Published by MBA Skool Team, Last Updated: December 16, 2015
What is Decentralized Work Site?
A decentralized work site is any work site that is located away from the organization’s main facilities. A decentralized work site is usually established to either cater to the demand of any specific geographical region or to operate at a location where there is low cost of production of the product demanded. Decentralized site include redistribution of decision making, people, power and functions.
All the organizations that are involved in production process of the products mostly aim for minimum cost of production and maximum profits, to achieve that they decentralize the work site to a more economically feasible location which is mostly away from the corporate facility of the organization. Decentralized work sites are also the result of expansion of the organization whether within the national boundary or international. The organization which deals in service providing business decentralizes their work site in order to serve to any specific geographical region. These types of work sites have their own responsibilities, decision making authority and accountability to the main facility. Managing a decentralized work site is very difficult, especially when the work site is new and when it is located in remote area or outside the national boundaries.
Following are few reasons why decentralized work sites face problems:-
1. Inconsistent experience- Each department independently decides their needs and don’t consider other units or the entire experience of the umbrella site.
2. Lesser focus- When the decentralized work site communicates to a wide range of customers within the same space, it then becomes frustrating and confusing at the same time. Thus, there are chances of lesser focus by the employees.
3. Inefficient usage of resources- There are different needs in different departments of the sites, usually most of the operations are directed by the senior officials of the main office, the local employees are treated merely as a facilitators, which results in the inefficient usage of resources.
4. Slow turnaround time- To establish and maintain an entirely new and independent work sites causes much more time than the centralized office.
Hence, this concludes the definition of Decentralized Work Site along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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