Introduction

Centralization is processed by which the organization’s top level management has authority to take decisions on all subjects, problems, and matters that are being faced by the organization. That means that all actions are subjected to the approval of top management. So, centralization can be a process by which an organization takes control of all decisions, whereas the managers or the middle management is supposed to implement these decisions made by the top management.(Management Study Guide, 2016)

The application of centralization in the organization is against the decentralization system. Both structures have own complications within the structure and benefits, and disadvantages as well. But, it is important to know that how could centralization structure applied, and implemented to help the organization regarding controlled decision-makingprocess and implementation of that decision by the middle management.

Moreover, the middle management might have concerns and reservations over the centralization structure, whereas they are not directly linkedtodecision-making because they are directed by the top management to implement their decisions. However, referring to our project about the centralization of administrative services HR and finance the question arises as to what organization structure should be incorporated with the centralization process.

The centralization structure is supposed tobe built on the project deliverables and timeline of the implementing the centralization system in the organization from adecentralized system that gives decision-making authority to the middle management of the organizations to take decisions on their own and implement them.Furthermore, how achange in administrative services departments should be structured, that could benefit the organization.

Centralization of the Administrative Services (HR & Finance) Harvard Case Solution & Analysis

Scope of Centralization

Human Resources Management

Human resources management departments are strategic partners of the organization, that they not only hire the candidates for acompany that would drive the company towards achieving the organizational goals, and objectives. Similarly, the centralization of the HR services would be abetter step that would provide strategic business advantages to the organization.

A centralized HR structure would save the cost and time of recruitment and selection process within the organization. The reason is that it would be better rather than the decentralized HR structure, where each manager belonging to thedifferentdepartmentis responsible for recruiting and selecting the workers, and employees of his department, following the centralized HR system.

The HR department would becomeresponsible for managing all HR related problems including recruitment, selection, payroll management, and better control over the operations provides efficiency in the work, and brings benefits for the company. In addition, the engagement of the HR employees with different department managers, supervisors, and employees would also enhance their quality of services being provided to them, which also reduce the processing time as well.

The knowledge sharing in the centralized system would also optimize the processes and the reason for that is because the core HR department can easily communicate the employee’s job descriptions, corporate goals, mission, visions, and objectives, and most important the characteristics of quality of the candidates.Moreover, a centralized human resource department can rapidly optimize the business processes so that HR department can easily, develop and coordinate the consistent processes for the recruitment and selection, performance management and recognition and payroll and benefits as well...........................

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