GM plans
GM plans a decentralization process for its operations in China. However, there are certain advantages and disadvantages associated with the decentralization method. GM must go through all of these aspects before implementing the decentralization process.
Advantages:
Decentralization indicates shared responsibility and multiple perspectives for GM companies. Decentralized management allows drawing experiences and insights to raise the intelligence level of the company. It brings a rich pool of knowledge rather than relying on limited perspectives.
The decentralization system also emphasizes on the employee engagement process by giving them empowerment. Workers are more engaged in the company’s various aspects, like making decisions, strategy optimization, etc. as a result, less employee turn-over is observed. It saves costs, efforts, and time for training new employees.
Disadvantages:
Decentralization is a cumbersome process as it takes a much longer time to make any strategy optimization. As employees can provide their voices in the strategy-making process, difficulties are observed in choosing the best course of action.
Different managers and employees may provide various solutions for one problem, which makes chaos in optimizing the right one.
If employees are not enough motivated and active decentralization process would be harmful to the company as employees can take advantage of this process.
Hence, it is essential to verify the efficiency of the workforce before the implementation of the decentralization process by GM.