However, despite these changes related to giving employees more opportunities within the business, there are problems with decentralization efforts in business when decision-making is taken away from senior executive leadership and given to lower-level employees. Without tighter controls in areas of job role function and line management, employees have opportunities to become too focused on their own individualized reward systems and can potentially create competition between peers rather than creating a team-focused environment dedicated to meeting long-term strategic goals. Especially in a travel leisure industry, where customer lifestyles and demands for service are extremely diverse, lack of organizational controls might lead to negative brand word-of-mouth or provide customers with a less-organized service experience that can ultimately lead to lost profitability and diminished customer loyalty. The question is then asked as to whether a relaxed corporate culture can be effective in this industry where emotions and psychological behaviors drive the majority of customer decision-making. Are there advantages, in this dynamic industry, in having a relaxed culture?Decentralization of business is designed to give more insight to employees and help them become more motivated by giving them autonomy and developing them as decision makers in the business. It is often the foundation of the relaxed corporate culture where controls are minimal. This section describes advantages and disadvantages, potentially, of the relaxed corporate culture.
Evaluation of the Effectiveness of a Relaxed Corporate Culture