Centralized process is a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. A centralized organization often resides its primary decision makers in a central headquarters with offices and meeting areas for leaders to discuss business. The degree of centralization will depend upon the amount of authority delegated to the lowest level.
Nowadays, many associations struggle with their management information systems and their membership databases. The primary struggles are the lack of centralized information. Thus, there are several benefits to moving your data to a centralized system, which can also be known as implications of centralized process management:
Maintenance of Data Integrity-When an organization is operating multiple databases for the same group of people, they are by definition breaking the rule of no redundancy. And this leads to major data integrity issues. A centralized database means that each member has one primary record, with primary contact information. Thus, it is required to keep track and update all information contained in an organization.
As less number of people are involved in discussing and deciding on strategy and action, centralized organizations, they react more quickly to a dynamic marketplace. This makes the communication and decision making process much more efficient and easier.
Maintaining of Data Privacy:
As a single person or a small group of persons are responsible to decide on strategy, they are also focused to maintain the data privacy of their organization. The privacy of the data is to be maintained whatever might be the reasons such as: disposing off the data by complete erasure while selling or donating the computer systems.
When only one person or a small group at the top is being involved making all the important decisions, companies experience less conflict and dissent among lower to mid-level employees. If many employees and levels in the organization get involved, more potential exists for conflict and difference in implementation.
A company president or executive team can establish and communicate its vision or strategy to employees and keep all levels moving in the same direction. This prevents potential inconsistency in vision.
Control and Accountability
When centralized leaders are in charge of all major decisions they retain more control over operation of the company and development of its culture.
Centralized ownership and management of the framework is essential, no matter where a framework or reference model is set up within an organization. The organizations should set up governance structures to foster the consistent adoption of the framework within the organization to maintain of the data privacy. These structures must be in harmony with the culture of the organization, while maintaining strict control over data privacy. This control as maintained by the centralized governance structure ensures consistency and enables the framework to contribute to the long-term value of the organization. Already having a centralized system in place is good but it is required to be vigilant about not allowing other “shadow” users to access over the data that is no longer in use within an organization, as the data may fall into the wrong hands.