The benefits of decentralizing the administrative activities of Piamana retail stores would be increased efficiency due to improved communication and coordination between different stores. Additionally, it would give store managers more autonomy and responsibility, which could lead to increased motivation and better performance. However, there are also potential drawbacks to consider. decentralization could lead to a loss of control by the board and more inconsistency in store operations. Additionally, it could be more difficult to track performance and enforce standards across all stores.
In Italy, a nationwide strike was called by trade unions in the retail (fashion) industry against big organisations that fail to fully implement the recently amended labour law. The trade union argued that employees’ work environments are hazardous, pay compensation is way below other industries, the workload is excessive, leading to long work hours and discrimination is seen at the workplace, all resulting in low motivation at workplace. The board of Piamana retail stores which is among the biggest retail (fashion) stores in Italy decided to revisit its organisational policy and set out to
In Italy, a nationwide strike was called by trade unions in the retail (fashion) industry against big organisations that fail to fully implement the recently amended labour law. The trade union argued that employees’ work environments are hazardous, pay compensation is way below other industries, the workload is excessive, leading to long work hours and discrimination is seen at the workplace, all resulting in low motivation at workplace. The board of Piamana retail stores which is among the biggest retail (fashion) stores in Italy decided to revisit its organisational policy and set out to
Piamana retail stores has 100 stores in Italy and 250 stores across Europe. All their administrative activities are performed in one place e.g. centralized record management program & records of all functional areas are stored in one central place. The board is planning on decentralising the process. Identify and discuss the benefits of such a move, and what the drawbacks could look like.