Decentralised management model – inefficiency in operation integration

Decentralised management model – inefficiency in operation integration. In a decentralized organization, the company empower middle and low-level managers to make decisions that affect productivity, efficiency and performance standards. Instead of handing down decisions from the top and expecting managers to implement those decisions, top management communicate the vision and expectations and trust the management to figure out the most effective methods of achieving your desired goals.

The main disadvantage of a decentralized organization is that you lose control over the day-to-day activities of your company. Maybe “lose” is too strong a word, but you are ceding authority to your managers, which means that you trust their instincts, skills, and talents. However, that can backfire, if your managers aren’t up to the task, which can cause conflict between managers and staff, and between you and your managers. Another disadvantage is that your managers may have a different agenda from yours, which can create a schism between the goals you want to advance and the goals they want to advance.
· Heavy dependence on South African market
· Majority of the revenue generated from few operating domains like transportation and catering.
· Intense competition from local companies

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