Learn the advantages and disadvantages of each type of management.
Without a doubt, the HR area was one of the departments that underwent the most transformations in recent times, our way of managing people today, is totally different than it was a few years ago. All of these changes had clear objectives: to reduce bureaucracy, humanize and optimize the time of human resources professionals and employees, of course. Therefore, today we have two types of management in the corporate world, centralized and decentralized, each with its own unique employee management and needs.
Check out the difference between Centralized and Decentralized Management in this article and find out which one best applies to your business.
Some tasks, no matter how simple they are, are always linked to the HR area. This is part of a centralized management, where much of the responsibility, such as closing time banks, issuing pay slips, or controlling vacations, is the exclusive responsibility of human resources managers and analysts. Already the decentralized management, is basically the opposite of that.
Shall we understand better?
Centralized management: Imagine that in a small company the HR area has direct contact with practically all employees, knows and monitors their emergencies and issues in the work environment on a daily basis and is therefore able to easily resolve most of them. In an organization like this, centralized management can work, as the company has a small number of employees and consequently the tasks are possibly manageable.
Advantages of centralization:
• Greater control;
• Uniformity in procedures and decisions;
• Good vertical communication, including the use of channels such as Corporate TV It is Corporate APP to transmit information efficiently;
• Ease of control and evaluation;
• Avoids waste and duplication of tasks.
Disadvantages of centralization:
• Decisions made far from the problem area, making quick and effective communication difficult. In that case, the Corporate TV it can be a tool to bring information closer to employees;
• Delay in decision making;
• High dependence on the HR department or others;
• Inefficiency in the use of resources.
Decentralized management: Here we have a completely different scenario, in decentralized management it is argued that the responsibility for managing employees does not only lie with the human resources area, but also with the leaders and even the employees themselves, who have the autonomy to solve small problems. This type of management is the most suitable in the current market, especially for medium to large companies, where the high number of employees can end up causing HR activities to get out of control and become disorganized and time-consuming. Furthermore, because they are closer to each other, leaders play a fundamental role in better understanding each person's needs and avoiding the bureaucratization of small tasks.
Advantages of decentralization:
• Autonomy for leaders;
• Agility in decision making;
• Creativity in solving the problem;
• Less dependence on other areas;
• Use and optimization of resources;
• Motivation and retention of talent;
• Use of different knowledge and experiences;
Disadvantages of decentralization:
• Lack of uniformity in decisions;
• Difficulty in control;
• Tendency to waste and duplication;
• Less efficient communication;
• Problems with evaluation and accountability;
And now? Which one to choose?
Decentralized or centralized management?
If you don't already have one Corporate TV in your company, or if you already have one, but want to know our differences, contact us right now and come and be part of the group of most satisfied customers in Brazil!
