Relationship Between Employees And Managers

846 WordsApr 18, 20164 Pages
Organizations are beginning to take advantage of more flexible and decentralized structures as their employees become increasingly educated and job satisfaction and employee turnover become larger concerns. This new structure, which is drastically different from the rigidity of organization from 50 years ago, has unsurprisingly affected the relationship between employees and managers. With decentralization on the rise, the gap between employee and manager continues to shrink as they continue to share an increasing number of responsibilities, including those regarding decision-making. Although the structure of an organization typically derives from its overall strategy, these new employee/manager relationships have caused new organizational strategies to be implemented. Centralization refers to “the degree to which decision making is concentrated at a single point in an organization.” In organizations that are highly rigid and centralized, only higher-level managers are given substantial decision-making power, while lower-level employees are left to simply execute these decisions. Decentralization, on the other hand, empowers lower level employees, giving front-line employees and their immediate managers much more decision-making power. There are numerous types of organizations, all varying in levels of centralization. However, structures that particularly emphasize flexibility include the virtual organization and the boundaryless organization, both of which are more
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