Daewoo Intercontinental Case


Q1: What are the advantages and disadvantages of any hands-off, decentralized management procedure?


A handsoff design of management implies that the leader permits his workers to work independently. A decentralized management is one in which decision making is not confined to a couple of top executives but rather can be throughout the organization, with managers at several levels making key functioning decesions associated with their world of responsibility.


With this type of strategy the leader allows the employees deal with themselves and there is no abordnung taking place in the management. This is why this style is called " hands-off” leadership as the leader evades his duties and direct employees. A highly decentralized management approach is one in which usually even the lowest level managers and employees will be empowered to generate decesions. At the other serious lower level managers have tiny freedom to generate decesions. Even so this approach has many advantages and disadvantages. Some of them are listed below

Advantages/Benefits of hands-off decentralized management strategy: Handsoff Decentralized approach has many advantages/benefits: It includes faster, more responsive decisions, greater flexibility, more initiative at decrease levels, reduced administration, and redundant capacities. 1 . Top management can be relieved a vast amount of day-to-day solving problems and is still left free to give full attention to strategy, upon higher level decision making, and choosing activities.

2 . Decentralization provides reduced managers with vital knowledge in making decisions. Without this kind of experience, they will be ill-prepared to make decisions if they are promoted in higher level positions.

a few. Added responsibility and making decisions authority often result in increased job fulfillment. Responsibility as well as the authority, which goes with that makes the work more interesting and provides...



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