Every manager should know the steps for total quality management (TQM) , but it is also advisable to learn what the difference is between ‘centralized human resources’ and ‘decentralized’ . Knowing about these two types of system can help you when establishing your business or company.
In short, knowing the main objectives in the management of human resources , includes knowing basic concepts related to the management of companies and entities. Therefore, knowing the centralized and decentralized systems is very relevant.
Centralized systems
In the case of human resources, companies or organizations, a centralized system refers to one in which a central nucleus is in charge of the essential aspects of the organizational structure. In other words, this central entity is usually the one that gives the last word or makes the most relevant decisions of a company or entity.
Centralized systems are characterized by having few representatives or managers and these have absolute / almost absolute power. It could be said that those organizations or companies in which there is a president who has the greatest responsibility in making decisions, are centralized entities.
Decentralized systems
Decentralized systems, unlike centralized systems, usually have several managers or people with power . This makes the authority usually dependent on several individuals or entities. In the decentralized system there are several people who can make relevant decisions for the company.
This type of system usually has a considerable number of responsible individuals. In fact, it is very similar to delegations, where several managers intervene directly in the course of companies or organizations.
The differences between ‘centralized human resources’ and ‘decentralized’
There are various differences between centralized and decentralized human resources . In any case, in general terms, we can establish two very relevant points:
- In the centralized system there are few managers or bosses, while in the decentralized system power or decision-making can be carried out by several individuals.
- In centralized systems, as its name indicates, there is a central entity. In a decentralized human resources system, there are several entities for each task.
Advantages and disadvantages of centralized and decentralized human resources
In a centralized system, specialization is encouraged, which is why a highly trained professional stands out. On the other hand, a decentralized system usually leaves out the specialized person, since there are several people in charge of decision-making.
Related to the previous point, in centralized systems usually the most prepared have better positions, but a very loaded job. On the other hand, in decentralized systems, the most prepared people may not have the best position, but ultimately their workload is lower .
In centralized systems it is well known that due to the fact that decisions are usually made by few individuals, it can lead to a monopoly of directives. On the other hand, in decentralized systems, actions are usually taken by all those in charge and not by a central higher figure.
Centralized systems take the human resources sector into account as a primary aspect. In any case, a decentralized system often eliminates limits , since even decisions in this area are made by all managers, appearing in the examples of companies with problems in the area of Human Resources .
Finally, in centralized systems, meritocracy is usually the order of the day, but this has the negative aspect that those who are at the bottom cannot rise. On the other hand, a decentralized human resources system contemplates that there are more possibilities for improvement for newbies, in any case, the quality of the team that works usually lowers .
The best option for small businesses
At the business level, a centralized system is certainly the most recommended for small businesses . Even so, it does not hurt to learn a little about decentralized systems, but even more relevant for your company is to know the most important factors that influence human resources management , since in the long run it will be the employees who determine the Business success.
