Impact of Decentralization on Employee Performance

The assignment aims to investigate the effects of decentralization on employee performance in the Tata group of companies. It will identify the pros and cons of decentralization, examine factors that impact decentralized management systems, and analyze how employees are affected by this decentralization in their management system.

Running head: RESEARCH IN BUSINESS
RESEARCH IN BUSINESS
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Problem Statement...........................................................................................................................2
Aims and Objectives........................................................................................................................3
A brief Methodology.......................................................................................................................3
Secondary data and data analysis methods......................................................................................4
References........................................................................................................................................5

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Problem Statement
The research study provides an overview on the impact of decentralization of
management system on employee’s performance in the Tata group of company. Decentralization
refers to the systematic delegation of the authority at all level of management in the organization.
In decentralization management system, decision making responsibilities as well as daily
operations are basically delegated to lower level or middle level managers by the top
management. Degree of decentralization mainly depends on the extent of authority delegated to
lowest level. The Tata group has highly decentralized management system and hence the
member organizations have autonomy mainly in terms of strategy as well as operations
(Courting EVA via @tatacompanies 2018) This management system benefits the managers of
Tata group by reducing their burden of performing different functions. Additionally, it also helps
the managers to focus on other vital managerial functions. Apart from this, it also facilitates the
Tata group managers to control as well as supervise in better way since their subordinates have
the authority of making decisions (Weihrich, 2013). As result, this improves both their managers
as well as subordinates performance. Furthermore, the executives of the member enterprise of
Tata group also develop new talents or the managerial position under this system
(Decentralisation 2018). The new talents further provide innovative idea to diversify products
and activities within the business operations. Recent evidences reflects that the Tata group of
companies has imbibed new business models, better methods of accounting and innovative
strategies due to their decentralized management system. However, the performance of
employees improves owing to adoption of innovative strategies and business framework.

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Although these managers or executives of Tata group gains huge benefits, they faces
problems of co-ordination since the authority disperse their functions throughout the company
(Drucker, 2012). Moreover, as uniform policies as well as standardized process are impossible to
follow under this system, it adversely impacts the sub-ordinates performance.
Aims and Objectives
The research study aims to investigate impact of decentralization of management system
on the employee’s performance of Tata group of company. The aim is also to identify the pros
and cons of decentralization of management system of the Tata group of company. The main
objectives are to-
 Identify the benefits of decentralization in the management system of the Tata group of
companies
 Examine the factors that impacts decentralized management system of Tata group of
company
 Examine how the employees of Tata group of companies are affected by this
decentralization in their management system.
A brief Methodology
Mixed methodology will be chosen for conducting this research study. Mixed
methodology refers to collection of both secondary as well as primary data for the research study
(Terrell, 2012).
Literature review- For analyzing the impact of decentralization of management system on
employees performance of Tata group, this section will highlight on the current performance of

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their employees and managers, issues faced by their managers under this system and its impact
on companies growth.
Collection of data – Secondary data will be collected from the website of the member
companies under the Tata group, journals and other industry sources.
Interviews-For supporting the findings from secondary data, interviews of managers and
employees of the Tata group will be taken.
Secondary data and data analysis methods
This research study will basically utilize secondary data from the website of Tata
companies, journals etc. Specifically, the business environment of these companies, flexibility in
managers work schedule, workers performance and issues faced by managers will be
investigated from these sources (Johnston, 2017). After collecting these data, correlation analysis
will be conducted for determining the influence of decentralized management system on their
employee’s performance.

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References
Courting EVA via @tatacompanies. (2018). tata.com. Retrieved 3 April 2018, from
http://www.tata.in/article/inside/GgoXow9a9Ck=/TLYVr3YPkMU=
Decentralisation: Meaning, Advantages and Disadvantages of Decentralisation. (2018). Your
Article Library. Retrieved 3 April 2018, from
http://www.yourarticlelibrary.com/organization/decentralisation-meaning-advantages-
and-disadvantages-of-decentralisation/25703
Drucker, P. (2012). Management challenges for the 21st century. Routledge.
Johnston, M. P. (2017). Secondary data analysis: A method of which the time has
come. Qualitative and quantitative methods in libraries, 3(3), 619-626.
Terrell, S. R. (2012). Mixed-methods research methodologies. The qualitative report, 17(1), 254-
280.
Weihrich, H. (2013). Management: A global, innovative, and entrepreneurial perspective. Tata
McGraw-Hill Education.