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  • Yaamini Renganathan

    December 26, 2021 at 1:20 pm

    The process of centralization refers to the concentration of planning and decision-making processes inside an organization to a single leader or location. In a centralized organization, the head office retains decision-making authority, while all subsidiary offices receive orders from the main office. The head office houses the executives and specialists who make key decisions.

    Based on the scenario provided, as a lead consultant, I would implement Kotter’s 8 Step Change Model.
    This model demonstrates dynamic, action-based transformational strategies to stimulate growth.
    HR and finance should be centralized so that the corporation can get strategic commercial advantages. HR is the department in charge of payroll, employee recruiting, and training, among other things. While the Finance section focuses on budgeting and profit maximization.

    As a result, by bringing these two divisions together, they will be able to collaborate toward a common goal of improving staff performance and profitability. HR and finance both need to think about the costs and advantages of onboarding new employees. When funds are held in the HR database, it is easier for finance to allocate funds to business policy because of this centralization.

    The centralization, which is the essence, requires only a small amount of information.

    Below are the real benefits of centralization:

    • Establish a sense of urgency

    • Create a guiding coalition

    • Develop a vision and strategy

    • Involve everyone and enlist a volunteer army

    • Removing and reducing barriers

    • Generating and focusing on short-term wins

    • Keeping the momentum going

    • Anchoring new approaches in the culture