Revue du Journal arabe des affaires et de la gestion

Impact of Decentralized Decision Making on Firm’s Performance

Abstract

Bashir S

Today firm’s especially large one can’t be controlled and administered by single individual and if so, the performance of those firms is not as good as the decentralized firms. Now a day’s firm gives opportunity to each employee to participate in decision making and give them freedom to make their own decisions in favor of firm. We take the examples of Honey Well, Google, Toyota and different sectors of Pakistan. We also give a model of our study that explains how decentralization increases performance with the help of cooperation. The result of study is that the performance of firms increases as the decentralization increases.