Diseconomies of Scale: New Normal for Many Growing – Decentralized Groups
I see countless examples of significant diseconomies of scale in growing, decentralized groups.
Based on my early management experience in airline, manufacturing and retail and continuing on today in our Spend Management practice, I believe that centralized management structures as it relates to staff functions such as HR, Purchasing, and IT perform better, more efficiently and more cost effectively than the decentralized organization structures that are common today.
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