Status

Final Submission in progress

'rompt

Logistics Services Company has recently expanded by acquiring two smaller companies in the transportation industry. Prior to these acquisitions, Logistics Services used a centralized style of organization because it was small enough that the top management team was heavily involved in the day$-$to$-$day activities of the firm. Ms$.$ Trane, the CEO, feels that this style is no longer suitable for the larger, more diverse organization.

She has hired a consultant to help her and her management team create a new structure which, when developed on paper, will be described to the affected employees and their inputs will be sought. Since no one in the company knows much about management styles, Ms$.$ Trane felt this would be an efficient way to get the ball rolling, but realized the consultants would not have the specialized knowledge about her company and the two acquisitions.

Jne of the first things she feels she will need to do is to explain the benefits of decentralization that will accrue to both the company and the affected employees.

Required:

Ms$.$ Trane has asked you, as the consultant, to provide her with a general list of advantages of decentralization that she will tailor to her company before presenting it to the executives and other affected employees.

$($a$)$ Managers of the organization's subunits are specialists. They have specialized information that enables them to manage their departments most effectively.

$($b$)$ Allowing managers some autonomy in decision$-$making provides managerial training for future higher$-$level managers.

$($c$)$ Managers with some decision$-$making authority usually exhibit greater motivation than those who merely execute the decisions of others.

$($d$)$ Delegating some decisions to lower$-$level managers provides time$-$relief to upper$-$level managers, enabling them to devote time to strategic planning.

$($e$)$ Empowering employees to make decisions draws on the knowledge and expertise of those closest to day$-$to$-$day operations.

$($f$)$ Delegating decision making to the lowest level possible enables an organization to give a timely response to opportunities and problems as they arise.