How does Decentralized decision making Help?
How does Decentralized decision making Help?
OPTIONS
- Limiting WIP
- Reducing risks
- Getting better Economic Value
- Reducing Defects
Answer:
Getting better Economic Value
Explanation:
Decentralized decision-making can help organizations achieve better economic value. By empowering individuals and teams to make decisions at the point of execution, organizations can respond quickly to changing market conditions, customer needs, and other factors that impact their bottom line. This agility can lead to increased efficiency, reduced costs, and improved profitability.
Additionally, decentralized decision-making can lead to increased innovation and creativity, as individuals and teams are able to experiment with new ideas and approaches without having to wait for approval from higher-level decision-makers. This can lead to the development of new products and services, the optimization of existing ones, and the discovery of new markets and customer segments.
However, it’s important to note that while decentralized decision-making can bring economic benefits, it can also pose challenges, such as conflicting decisions and a lack of accountability. To address these challenges, organizations often employ a mix of centralized and decentralized decision-making, with certain decisions being centralized and others being decentralized based on the nature of the decision and the level of autonomy required to make it effectively.
