Page 5: Decentralisation
Managing and controlling operations is a major issue for any organisation. Some companies are highly centralised decisions would be made at Head Office level and filtered down. This is called a centralised or top-down view of decision making.
A decentralised approach
The other approach, which is used by Go-Ahead, is decentralisation. Meeting needs is central to a company's success. Transport needs vary from place to place. Go-Ahead has a decentralised approach, so managers can better meet local needs. This gives it a competitive edge over its rivals.
Go-Ahead's unique approach within the transport sector offers its operating companies the freedom to develop and run their businesses. Local people make local decisions in running local services.
For example, each of the companies will decide how and when it will run its services. They also have the choice to agree terms and conditions in the local labour market, in order to react better to the local job market.
The diagram shows a decentralised approach rather than a centralised one where Headquarters dictates all procedures. However, there are areas that are centrally managed. These include policies relating to impact on society and the environment. All companies in the group must operate in an environmentally friendly way.