Metrics in a Centralized Model Adherence to corporate metrics is commonly mandated in a centralized staffing environment, often to track compliance to a standardized process. Therefore, metrics can focus on the steps of the process in great detail, with the aim of driving incremental improvements in performance.
A shared, centralized database can easily be the source of data. A perennial issue, afflicting centralized and decentralized staffing models equally, is that reporting is often an afterthought. If recruiters have to stop what they are doing and fill in data after the fact, then there will be issues with the quality and integrity of the data. The danger in a centralized environment is to measure and report on too many metrics, simply because the data is available.
Be careful not to be too focused on the data. With too much data, it is difficult to know what is wheat and what is chaff. Metrics in a Decentralized Environment Much of the discussion of centralization and decentralization of staffing functions has a subtle bias against decentralization, implying that it is less rigorous and a second-class business practice. But a decentralized model is sometimes a necessity, depending on the business model.
For example, a retail company with numerous small outlets typically employs a decentralized structure, suited to the lightning-fast hiring process typical of such environments. Introducing metrics is one way of increasing rigor and raising visibility of a decentralized staffing function. If a centralized staffing function is faced with an embarrassment of riches for metrics, a decentralized function typically is faced with a desert of data.
HR generalists and hiring managers commonly are carrying out the staffing work; collecting and reporting data takes them away from the real work of the day.
Again, I appreciate your contribution to knowledge. Thank you very much for this article. It helps me a lot in understanding my school report. Thanks for your explanation about the difference between the two, I have been finding a good explanation for long but your article just make everything clear to me.
Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Key Differences Between Centralization and Decentralization The points given below are noteworthy, so far as the difference between centralization and decentralization is concerned: The unification of powers and authorities, in the hands of high-level management, is known as Centralization. Decentralization means dispersal of powers and authorities by the top level to the functional level management.
Centralization is the systematic and consistent concentration of authority at central points. Unlike, decentralization is the systematic delegation of authority in an organization. Centralization is best for a small sized organization, but the large sized organization should practice decentralization. Formal communication exists in the centralized organization. Conversely, in decentralization, communication stretches in all directions. In centralization due to the concentration of powers in the hands of a single person, the decision takes time.
On the contrary, decentralization proves better regarding decision making as the decisions are taken much closer to the actions. There are full leadership and coordination in Centralization. Decentralization shares the burden of the top level managers. When the organization has inadequate control over the management, then centralization is implemented, whereas when the organization has full control over its management, decentralization is implemented.
Comments Thanks for this post, please post difference between formal and informal organisation.. Thanks for your appreciation, we will surely consider your advice. Thanks a lot for your clear information concerning about decentralization and centralization. Thanks for giving lot of information about centralization and decentralization.
Very useful for those who are in thier awakening period.. Decentralization gives authority to individual departments or divisions to make decisions. For example, a business consisting of three main pieces may have separate IT, HR and even safety departments that focus specifically on that particular location or division. The focus would then be meeting the differing needs of each location. As an example, consider the critical process of recruitment as a centralized or decentralized function.
Decentralization might seem to make more sense. Department heads select their own candidates, meaning that interviews can be more specialized to their specific needs, and hires can be made with more intent toward a specific skill set needed within that department. However, this decentralized approach can end up inadvertently sending an inconsistent message across the organization if different departments have differing standards or hire using different pay grades.
In these cases, centralization can help standardize the recruitment process across the board to ensure that all applicants have an equal chance during evaluation. Centralization also lowers costs overall by having specific employees who work on recruitment rather than many department heads spending time on the process.
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