The benefits of a centralized structure of an organization are manifold and include but are not confined to fast decision-making, clearly assigned roles and effective communication. In order to move to a more centralized structure, a company should implement a set of measures that are often associated with fund reallocation. First, it is important to establish an effective communication channel and the patterns of reporting and decision-making. It is important to identify the level at which certain decisions will be made. Employees should have a clear understanding of the amount of data to be provided, terms, and exact channels and platforms to use. This part will need to change budgets in some ways. It is necessary to consider such areas as a labor (IT specialists’ hours for arranging communication channels), equipment (purchasing new equipment (hardware and software), furniture), and contingency costs. Additional costs may be needed if training or some services (changing the furniture and the layout of the office).
Communication is the key aspect to concentrate on, but it is also important to pay attention to employee training and information dissemination. Since the company’s structure is undergoing changes, employees should know about the reasons for changes and potential outcomes, which will have a positive effect on their morale and motivation. As for budgeting, this portion of measures will need funding labor (hours of HR specialists developing new job descriptions, policies, and so on), equipment and materials (hardware and software if needed, office supplies), and contingency costs. These are two major domains to focus on when moving to a more centralized structure. It may also be important to consider researching the implications of these changes, which may need additional funds for HR professionals’ developing report templates, analyzing questionnaires, and creating a report.