Relationship of Centralization to Other Structural Properties The specific topic of the article is to examine two different ways of distribution of power in an organization and computing the relationship between the three main structural properties of the organization which includes formalization, complexity and centralization. The authors have done extensive research on sixteen welfare and health organizations and have developed a framework, which establishes a relationship between the structures of the organization with the level of complexity and rules that governs the organization. The sociology background of the authors Michael Aiken and Jerald Hage …show more content…
8) Professionalization is an external means for accomplishing the same result: business schools teach future managers behaviours that will be expected of them in their work organizations. Decision making is of two types. These include: 1) Decision making regarding the allocation of resources. 2) Decision about the organizational policy which is strongly related to organizational complexity and not on the degree of formalization. Formalization includes job codification and rules observation while the Complexity includes number of occupational specialities, number of professional trainings and amount of professional activities. Organisational analysis as pointed by Michel Croziers is the study of the distribution of power. Various researchers have pointed out how important the allocation of power is in an organization. The specific purpose of the paper is to study the organizational behavior and the three main elements that are used to gauge the structure are Centralization, Formalization and Complexity. The author through his work tries to find out the relation between these basic elements. We move ahead with the basic definitions of the terms used. Formalization : The extent to which work roles are structured in an organization, and the activities of the employees are governed by rules and procedures. Complexity : It refers to the degree of the differentiation that exists within an organisation. Complexity signifies a. Vertical differentiation : depth
Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery
Professional Socialization is defined as the process by which individuals acquire the specialized knowledge, skills, attitudes, values, norms and interest needed to perform their professional roles acceptably( Maclntrye, Murray, & Teel, 2009). There is formal and informal socialization. Formal socialization involves planned
7 Centralization:The extent to which decisions within an organization are concentrated at the top of the hierarchy.
Each organization must have a structure of the authority defined and distributed to help in the organization of the tasks and functions with the aim of achieving the objectives of the organization. An organization structure offers details of the formal structure of the authority in the organization. It is essential to study the organization structure of the organization in order to understand the functioning of the organization. This paper examines the organization structure of the nursing department in Kingston Centre hospital. The paper will look at the nursing and the nursing service management department in the hospital (Burke, 2013). The hospital is selected because I have been able to interact with the facility many times. I have been able to work in this department hence I understand the organization structure and the services offered in the department.
Blau and Scott (2016) devised a set of qualities they argued delineated a formal organization from a truly informal organization. They quickly confirmed that social organizations would not conform to the characteristics of a formal organization. Formal organizations emerge when there is “an explicit purpose to achieve certain goals” (Blau and Scott, 2016, p. 175). Size and complexity as well as the existence of an administrative structure help to portray a formal organization. Other factors that characterize a formal organization include the intensity of the bureaucracy and hierarchy within the organization. Of note, Blau and Scott indicated that “formal organizations are man-made” (2016, p. 177) unlike social or informal organizations. Unexpectedly, they confirm that “informal organizations arise in every formal one” (Blau and Scott, 2016, p. 175). The formal organization is “the organization”, not the informal one that exists within; however, it is vital to understand the nature of the informal organization and attached social relations and unofficial norms (Blau and Scott,
The organizational structure is a framework that a company uses to differentiate authority and roles, and the way information flows. Organizational structure is divided into two forms: mechanistic and organic structures. Mechanistic structure is used in modernism where there is high degree of differentiation (numbers of levels in hierarchy- vertical and horizontal), centralization (lower levels have to report to top management), standardization (bureaucracy and standard process), formalization (rules), specialization (division of labor to do only specific task) and low integration (low coordination of activities) between functional designs. Modernism has tall organizational structure as it consists of many hierarchical levels. Mechanistic structure is used in stable companies such as universities and government organizations. According to Adam Smith, division of labor can produce economic
In the early 1980s, Henry Mintzberg’s, constructed the organizational archetypes. In this model Mintzbeg introduces five types of organization structure and how they influence the functions of organizations. On the organizational model there are five categories which are: Entrepreneurial, Machine (Bureaucracy), Professional bureaucracy, The Divisional (Diversified), and Adhocracy. Entrepreneurial organization consists of one large unit with one or a few top managers. The organization is relatively unstructured and informal compared with other types of organization, and the lack of standardized systems allows the organization to be flexible.
The words “complexity” and “complex” have been used in the context of management. While the word “complex” suggests dynamics rising from the interaction between elements, factors, parts, it results in nonlinear and ongoing changes in the parts. The word “complexity” is used different ways in many organization systems. The different uses of this word is dependent on the systems being chartered and organized. Nowadays, complexity theory is at the center of what systems are today and it is attached with the concept that a system is more than a set of machines. Regarding complexity theory, Margarita Mayoral (2012) stated that “Complexity theory enables the identification, characterization, and comparison of the structure and dynamics of many
First, natural system theory argues that organizations can best be described as “collectivities,” where they function as a team to create and accomplish a specific goal. However, reaching a set goal is not the main focus of this paradigmatic view, instead natural system theorists primarily focus on studying the behavior and actions of various organizations. Two of the key features of this paradigmatic view are goal complexity and informalization. First, goal complexity is centralized around studying the behavior and normative structures within an organization versus the goals that are sought after by the organization. Conflicts exist between an organizations proposed goals and the goals they are able to complete as an organization. And, oftentimes the stated goals are not the only ones being sought after by members of the organization or the organization in its entirety. Furthermore, an informal structure or informalization is also a distinctive characteristic of a natural system because different individuals bring in different values, ideas, cultures, and traditions that can be shared with the organization to formulate new ideas and goals that benefit the entire organization both horizontally and vertically.
There are two types of responsive organization that is the mechanistic organization and the organic structure. The characteristic of mechanistic organization is it is centralization. The decision making is concentrated on top management. The next characteristic is standardization, the task must be standardize and formalized so that the task can carry out smoothly. While, the characteristic of organic structure is decentralization, when the environment is unpredictable and dynamic, the complicated decision making will involves lower level managers. Therefore, the decision making power assign to lower rank so that they
Based on this right, the bureaucracy designed by Weber has clear division of labor; thoroughly indicated hierarchical relationship and pointed out impersonal relationship (Crozier, 1964). In the course of history, there have been various more perfect organizational systems, therefore, bureaucratic theory was questioned and criticized by many scholar. However, there are still certain organizations that use bureaucracy theory to design the corporate structure despite many critical views.
Formalization relates to how the organization has specific rules or codes to govern how work is done. Formalization is high when employees are consistently communicated of detailed rules. (Burton, et al, 2011)
In modern theory, an organization is defined as a designed and structured process in which individuals interact for objectives (Hicks & Gullet, 1997) Modern Theory has three different Approaches: 1. The systems approach: it views the inter connectedness between several components such as, individual, environment, communication, balancing and decision analyzing as the goal of organization as well. 2. Socio- technical approach: it is based on technical system and environment of organization. An organization uses tools and techniques on producing their products to make the organization more effective technologically. 3. Contingency or situational approach: it is based on inter-relating to the environment. When different environments require different organizational relationships for maximum effectiveness in correlation with social. Legal, political, technical and economic factors.(refer to appendix 1)
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure:
An organisational structure is defined as the framework in which the organisation defines how tasks are divided, resources are deployed and departments are coordinated (Daft, Kendrick & Vershinina, 2010, p.349). The organisational structure usually depicts the formal organisational structure which displays the official hierarchy and lines of authority with their spans of control (Ganguly, n.d.). There are however, informal structures that exist within the organisation which depict the way in which official rules are negotiated or subverted through the informal practices of subordinates (Ganguly, n.d.).