Business owners may need to consider changing the organizational structure depending on the growth and expansion of business operations. As a result, it becomes impractical to concentrate power and decision-making authority at the top.
Larger organizations usually require a more decentralized structure since such companies can have several divisions or departments. There are many advantages why this national icon of a company has chosen a centralized organizational structure. Centralization means centralizing performance where the operation is under one roof.
High degree of decentralization is possible if less checking is needed on a decision, especially if few people need be consulted on a decision, or if the greater the number of functions affected by decisions made at lower levels, The types of organizational structure benefit overall well-being of a business because it determines the nature of relations, makes possible the application of the process of management and creates a framework of order and command through which the activities of the organization can be planned, organized, directed and controlled.
Individuals at each level in the business may have some autonomy to make business decisions. To gain the most value from technology, it becomes imperative for BP to move highly trained drilling professionals to areas of high activity so it can apply the latest technology. As BP aims to bring a better customer experience, they have shifted from vertical organization to a horizontal one that is able to communicate better with the end user, the customer.
Decentralized organizational structures often have several individuals responsible for making business decisions and running the business. Without this sometimes rigid structure, it is conceivable that independent franchise owners could sell what they wish and deviate totally from the national menu.
Decentralized organizations can struggle with multiple individuals having different opinions on a particular business decision.
Organizational structures do not always require significant amounts of planning time. In a very large and diversified organization, it is unlikely that a handful of people will possess all the resources to achieve all goals and objectives of the enterprise.
This prevents potential inconsistency in vision and helps companies deliver a common message to customers and communities. Each structure offers advantages and disadvantages for business owners. In practice, the combination of the two occurs.
Team Management Centralized organizational structures rely on one individual to make decisions and provide direction for the company. This will create an organizational structure by default, with no serious planning involved. Another disadvantage is that its lack of lower level management authority tends to reduce manager motivation.
Both structure have their advantages as well as their disadvantages. As such, these businesses can face difficulties trying to get everyone on the same page when making decisions. The disadvantage is the narrowness of outlook inherent in functions and standards set cannot easily be linked to objectives of the business.
Additionally, little question exists over who is accountable for the results of those decisions.The main difference between centralized and decentralized organizations is the division of work and grouping of activities.
Decentralization is connected Centralized and Decentralized Organizations Essay Sample. The types of organizational structure benefit overall well-being of a business because it determines the nature of relations. It Organizational Structure At Comcast Information Technology Essay.
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An organizational structure is the outline of a company’s framework and guidelines for managing business operations.
Organizations are usually responsible for creating their companies' organizational structure, which is usually an extension of the owner’s or board’s personality, management style and characteristics.
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. Read this essay on Centralized vs. Decentralized Organizational Structure. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more.
Only at killarney10mile.com". Jun 30, · An organizational structure is the outline of a company’s framework and guidelines for managing business operations.
Small business owners are usually responsible for creating their companies.Download