The internet: this is the classic decentralized organization example of our time it was deliberately created to overcome the limits of a centralized military command and the threat of missile attack. Chapter 10 basic organizational design essay within an organization 3 organizational design is developing or changing an organization’s structure this process involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization/ decentralization, and formalization. Centralized and decentralized organizations essay sample the main difference between centralized and decentralized organizations is the division of work and grouping of activities decentralization is connected to delegation of authority and is concerned with what should be transferred down, what policies are needed to guide actions and the need to train and select people and control their actions.
Centralization essay centralization in the context of an organization relates to the concentration of decision-making authority at the higher levels of management its converse, decentralization, is the dispersal of authority from the higher levels to the lower levels of management. Centralized and decentralized organizations essay sample the main difference between centralized and decentralized organizations is the division of work and grouping of activities.
In a centralized organizational structure, decision-making authority is concentrated at the top, and only a few people are responsible for making decisions and creating the organization’s policies in a decentralized organization, authority is delegated to all levels of management and throughout the organization. Conversely, a decentralized structure distributes decision-making in an informal environment the centralized structure was effective, in part, due to decision-making authorities being reserved for upper management (hitt & brynjolfsson, 1997) the two case studies presented excellent examples of how organizational structure influences the use of it. Definition: the process of transferring and assigning decision-making authority to lower levels of an organizational hierarchy in a decentralized organization, the decision-making has been moved to lower levels or tiers of the organization, such as divisions, branches, departments or subsidiaries. Keep in mind that centralization-decentralization is relative, not absolute-that is, an organization is never completely centralized or decentralized some of the factors that affect an organization's use of centralization or decentralization.
Essays & papers centralised & decentralised organization - paper example centralised & decentralised organization the advantages and disadvantages of centralized versus decentralized organizational structures lies greatly in the inherent qualities and effects of the structures themselves - centralised & decentralised organization introduction. Chapter 4: inside organisations this essay will explain the various ways of how a large centralised organisation achieves a more flexible structure through de-centralisation this essay will analyse the benefits and drawbacks of the matrix structure and the functional structure. However not all flat structures are decentralised take for example the functional structure, despite being flat it is a rigid and centralised structure the matrix structure would enable a large organisation to achieve greater organisational flexibility because one of its main strengths is allowing ease of communication. Organization in which senior management reserves much of the power necessary to make critical decisions, are called centralized decentralized - organization in which the power is concentrated in lower levels of management we can define the factor of centralization by the following characteristics 1.
On the other hand, the more that lower-level employees provide input or actually make decisions, the more decentralization there is keep in mind that centralization-decentralization is relative, not absolute-that is, an organization is never completely centralized or decentralized. General motors: general motors is a classic centralized organization example microsoft: microsoft is also a classic centralized organization example decentralized organization examples starfish: the starfish is the animal kingdom’s primary decentralized organization example whilst they may look similar to spiders and they are structured very differently.
Centralized vs decentralized organizational structure many multinational corporations are increasing in all around the world rapidly besides, multinational corporations play a common significant role in globalization. Writing sample of essay on a given topic factors affecting centralization and decentralization factors affecting centralization and decentralization the way in which the exertion of power takes place affects the operational nature of an institution.
For example, the government sets policies that govern different entities which in turn influence the degree of decentralization or centralization of a business apart from the government, the market, competition, technology and globalization play as external pressures to either centralize or decentralize.