Centralization in film production

Centralization in Film Production. According to the Motion Picture Association of America, the average cost of all production, overheads in the studio and financing of all costs up to the creation of the actual movie negatives (also termed as the negative value), was around $51 million in 1999 and went up by 6.5% in 2000 to around $55 million (MPAA). This signifies a big difference over independent films whose budget often is around $10 million to $ 20 million (Frumes 5). Over the last decade, the negative costs have spiraled out of control prompting film studios, under their designated unions, to undertake debates on the most economical ways to ensure that the movie production cost does not go extremely high (Lambe 98). Among the policies mentioned included centralized production, independent films production and prices regulation (Susman). The paper herein identified centralization as the most efficient and economical way of film production costs does no spiral out of control.

Centralization is an organizational method whereby decision making is reserved for the executive level and employees lower in the hierarchy do not possess the power to make decisions (Tinbergen 43). Moreover, lower level employees are subject to approval by the executive managers. This type of organization has advantages in that there is fast execution as time is not wasted debating the matter, the vision of the organization and focused, conflict is reduced, and control and accountability are easy to disseminate (Kokemuller).

Costs in the organization are also effectively reduced since a lot of time is saved which would otherwise be costly (Chantal). Accordingly, the film industry should adopt this organizational method were all the involved parties would be under contract from a single studio; this studio will make all decisions about film production.

The centralization method has been proven to be a universally effective way in many types of field. An example is its application in Montage Hotels and Resorts; it improved its efficiency in receipt processing (Hospitality Technology). Another example is on supply chain analysis where a centralized supply chain management method proved superior (Kostarelou 429). It also has substantial advantages in the education sector and improves its operation (Mok 3-17).

In conclusion, it is clear that centralization is the most effective and economical way of film production based on the benefits it produces.

Work Cited.
Chantal. “Centralized Organization vs. Decentralized Organization.” Ordoro Blog. 2012. Web. 19 Nov. 2015.
Frumes, Howard. “SURVIVING TITANIC: INDEPENDENT PRODUCTION IN AN INCREASINGLY CENTRALIZED FILM INDUSTRY.” Loyola of Los Angeles Entertainment Law Journal (1999). Print.
Hospitality Technology. “Montage Hotels & Resorts Cuts Costs and Improves Efficiency with Centralized Receipt Processing.” Montage Hotels & Resorts Cuts Costs and Improves Efficiency with Centralized Receipt Processing. 2014. Web. 19 Nov. 2015. <http://hospitalitytechnology.edgl.com/news/Montage-Hotels—Resorts-Cuts-Costs-and-Improves-Efficiency-with-Centralized-Receipt-Processing95479>.
Kokemuller, Neil. “The Advantages of Centralized Organizational Structure.” Small Business. 2014. Web. 19 Nov. 2015. <http://smallbusiness.chron.com/advantages-centralized-organizational-structure-21410.html>.
Kostarelou, Eftychia, and Georgios K. D. Saharidis. “Centralize vs. Decentralize Supply Chain Analysis.” Encyclopedia of Business Analytics and Optimization (2012): 429-39. Print.
Lambe, Jennifer L. “Motion Picture Association of America (MPAA).” Encyclopedia of Children, Adolescents, and the Media (2010). Print.
MPAA. “MPAA Official Website.” Web. 19 Nov. 2015. <http://www.mpaa.org>.
Mok, Ka Ho. “Centralization and Decentralization: Changing Governance in Education.” Centralization and Decentralization (2010): 3-17. Print.
Susman, Gary. “We Call It Martian Accounting.” 2001. Web. 19 Nov. 2015. <http://www.theguardian.com/film/2001/aug/31/artsfeatures>.
Tinbergen, Jan. Centralization and Decentralization in Economic Policy. Amsterdam: North Holland Pub., 1954. Print.