Relationship of Centralization to Other Structural Properties

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

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

The structure of an organization can vary depending on the company. This is responsible for maintaining and outlining specific duties or task within the organization. Depending on the company they can choose between a centralized or decentralized structure. Centralized organizational structures focus management authority and decision-making in a single executive team, with information flowing from top managers to various business units (Centralized Vs. Decentralized Organizational Design, David Ingram, 2017). Decentralized organizational structures, on the other hand, look more like multiple smaller representations of a single structure, featuring management redundancies and more close-knit chains of command (Centralized Vs. Decentralized Organizational Design, David Ingram, 2017). Within these, there are more specified structures with different advantages and

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)

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:

(c) Analyse the structure of your organisation with reference to the structural dimensions of formalisation, complexity and centralisation. Do these structural features help or hinder the ability of your organisation and/ or department to achieve its objectives? Explain, referring to relevant examples in developing your answer (750 words).

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.

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

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.).

Structure and hierarchy come from how work and the work processes are coordinated together and relating how tasks and coordination of these tasks is to be obtained. When determining the authority in the structure of an organization, there are two major options, centralized and decentralized. A centralized organizational setup is where the authority to make important decisions is retained by managers at the top of the created hierarchy whereas a decentralized organizational setup is where the authority to make important decisions about organizational resources and to initiate new projects is delegated to managers at all levels in the hierarchy. Each choice is made based upon the main goal/task of the organization and what would better fit the organization. Whether work/the

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

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.

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)