Does decentralization make a difference for the organization? An examination of the boundary conditions circumbscribing decentralized decision-making and organizational financial performance.
Richardson-HA; Vandenberg-RJ; Blum-TC; Roman-PM
J Manage 2002 Apr; 28(2):217-244
Recently, there has been increased interest in the organizational gains that can be achieved by decentralizing decision-making authority to lower level employees. Yet, literature examining the relationship of decentralization to organizational performance is both scarce and equivocal. The current study examines decentralization's influence on financial performance in a sample of behavioral healthcare treatment centers. As expected, the decentralization-financial performance relationship is moderated by key organizational characteristics. Implications of the findings are presented.
Decision-making; Management-personnel; Work-organization; Work-operations; Work-environment; Employees; Work-performance; Health-care-facilities
Hettie A. Richardson, Department of Management, Ourso College of Business Administration, Louisiana State University, CEBA Building Room 3158, Baton Rouge, LA 70803, USA
Journal of Management
The Institute for Work and Health, Toronto, Ontario, Canada