Decentralization of the organizations as a way to release potential through reorganization of the employees to motivated, knowledgeable workers

Abstract

Management systems describe creation of factors and tools for successful management of the organizations. They define the creation of business philosophy from instruments assuring the smooth and efficient production to controlling and selling and many other features. These findings crystallized during the 20th century into various forms and management systems. Their development is the common denominator, such as the constant growth of knowledge of the workers, which goes hand in hand with increasing social and legislative protection of the workers. The last phase of this evolution is then characterized by rapid technological development, globalization and enormous increase of quantity of information, and the possibility of information processing and subsequent usage. However, the question is how to achieve in many of today's 'over-bureaucratic' businesses the basic of all of these efforts, i.e. motivation of the worker not to act only on the basis of the supervisor's direction but to act proactively and become the knowledgeable worker. The following work presents the basis that a decentralized firm can create ideal conditions for the development of internal motivation of the workers. The basic principle of decentralized management system lies in the fact that worker (group of workers) is entrusted to take care of the workstation with clearly defined powers and responsibilities. This workplace has on one hand clearly defined plan, specific requirements for its production output, on the other hand, all the necessary resources needed for its operation are secured. Inputs are 'purchased' from the department that precedes the workplace in the process, and outputs are then 'sold' to the next department as if it was the customer. Settlement is then in the progress at a pre-established clear internal calculations. Therefore, a network of supplier-customer relationships within the company itself is created. This arrangement changes the thinking of the people from 'wage' principle to the business one. Workers no longer need to deal with the ongoing events passively but actively, and instead of acting as employees, they should now think as co-owners and entrepreneurs. Such workers are involved in a flawless operation, high productivity, improvement, efficient management of resources etc., since any improvement leading to greater productivity and efficiency themselves bring them an additional profit (but also a loss) in the form of the difference between the realized price and the price determined by internal calculation. Increased productivity leads to higher earning per worker and satisfies existential needs of the workers. The system does not remain only for the satisfaction of the existential needs; which is often these days, along with the fear of the loss of the job and the only motivation for employees to work. However, the system also motivates by the fact that the employee gets the opportunity to exploit their ideas at work (becoming knowledgeable workers), increase their complacence and self-reception and ideally it will lead to self-fulfilment and social recognition. Our research deals with identification of the main elements of successful companies of the past that were managed on the basis of decentralized management systems. By means of questioning from June to August 2010, we want to verify the degree of utilization of these elements in the businesses today and find out whether there is a causal relationship between the degree of decentralization and the success of these companies. On the basis of the findings, we would like to recmmend the methodology leading to unlocking of the potential through transformation of the employees into motivated, knowledgeable workers through the system based on decentralization of the company.