Step 1 Post a response to the discussion board. Respond to the following prompts. If appropriate, include personal experience in your response: Explain in what circumstances a company needs to decentralize. Describe how performance evaluation systems are

This is a discussion question.

Step 1 Post a response to the discussion board.

Respond to the following prompts. If appropriate, include personal experience in your response:

• Explain in what circumstances a company needs to decentralize. Describe how performance evaluation systems are used to control organizations. Explain how the balanced scorecard can be used to assess company performance.

Step 2 Read and respond to other students’ posts.

Read other students’ posts and respond to at least two of them. Again, if appropriate, include personal experience to support or debate other students’ posts. If differences of opinion occur, debate the issues professionally and provide examples to support opinions.

Here are the two answers you have to respond :

1. When developing a company, it requires a larger operation including different divisions and units to take it easier and faster in management. Decentralized operation delegate decision-making to unit managers, usually based on geographic are, product line, business function. Divisions of a decentralized company might independently handle all aspects of their operations or only particular ones. The teams still need to make sure their actions align with an agreed-upon vision and broader plan. However, they might make up their own rules and determine their individual processes, reaching consensus on them as a team. The degree of decentralization that’s right for a company depends on its size, culture, and strategy. Using decentralized structures improve customer relations and managers at all levels believe they have strong involvement in the success or failure of the company, but more people are involved and decisions are not concentrated with the goals.

Performance Evaluation Systems (PES) promote goal congruence and coordination by providing incentives for coordinating the subunits’ activities and direct them toward achieving the overall company goals. PES communicate expectations and motivate unit managers by pointing out the most critical objectives of each unit so that the unit managers can make decisions consistent with the overall goals. PES provide feedback to upper managers and compare the unit’s achievements with others to maintain control within organization.

The balanced scorecard represents a major shift in corporate performance measurement. Keeping the score of operating measure and traditional financial measure give management a balanced, comprehensive view of the organization. Management use key performance indicator such as customer satisfaction rate, market share, employee training hours, operational efficiency, revenue growth… to evaluate the performance of the company. Otherwise, the balanced scorecard view the company from 4 perspectives: Financial perspective, Customer perspective, Internal business perspective, and Learning and growth perspective.

2. Decentralization frees up top management to focus more on major decisions. For a small business, growth may create the need to decentralize to continue efficient operations. Decentralization offers several advantages, such as employees can be empowered by having more autonomy to make their own decisions, giving them a sense of importance and making them feel as if they have more input in the direction of the organization. Decentralizing also can takes some of the burden of daily business operations off the business owner. Preparing for emergency situation, be able to make decisions more quickly than one with a centralized structure and facilitate the process of expansion.

A performance evaluation system is a way to examine how is an employee is performing in that job. The company can use the performance evaluation system to encourage positive performance and behavior. Second, it is a way to satisfy employee curiosity as to how well they are performing in their job. It can also be used as a tool to develop employees. Lastly, it can provide a basis for pay raises, promotions, and legal disciplinary actions.

The balanced scorecard can provide information about the company when viewing company objectives. An organization may use the balanced scorecard to implement strategy mapping to see where the value is added within an organization. A company also utilizes a balanced scorecard to develop strategic initiatives and strategic objectives.