1. What are the respective advantages and disadvantages of centralization and decentralization in an organization (or laterally across organizational lines)? How might a manager decide how to strike a balance among the various benefits and drawbacks? Discuss. I believe coming from a military background, my prospective as an advantage of centralization would be the precise flow of orders for a task. Having a structure hierarchy makes the follow of commands from the top of the pyramid to bottom organized was minimal confusion. One of the disadvantages of centralization is decision are made from the top without a sanity check from the organization. One of the advantages of decentralization is that the responsibility pool and decision maker are increases allow multiple inputs on the best way to accomplish a task. The disadvantage is with every bus of task you need a bus driver that is responsible for ensure the task is completed. Being a manger you have to test the waters to see what works and does not. After you get your results, you have to implement a plan for success. 2. What are the common characteristics of “open” and “closed” systems of organization? How do open systems facilitate organizational development and change? Open systems are complicated and in my eyes, they have a level of redundancy. An open system of organization plays an active role with the its environment. They care about pressure and will make changes to accommodate accordingly to satisfy.
Open systems perspective also suggests that organization's efficiency is equally important to it's success. An organization is efficient when it produces more outputs with less then normally required inputs, and when it's internal subsystems have good coordination among them. But this is difficult in reality. Because there are some negative elements in subsystems such as miscommunication and hostilities, which undermine efficiency of organization. These elements cannot be eliminated as subsystems of an organization are also open systems and organization gets affected by them also. (McShane & Steen, 2012, p.6)
8. What are the pros and cons of each key organizational structure? Which do you think would be the best fit for you? Explain your answer.
One of the themes in Thomas McCraw’s book American Business Since 1920: How It Worked is mastering centralized control through decentralized management. As the business world rapidly expanded competition for market share between the larger companies increased. More task management was necessary in order to delegate within the businesses as they expanded. The market was also changing and as an answer to that some companies implemented a revised version of traditional management; decentralized management (McCraw, 2009).
Nursing-sensitive indicators are important in all aspects of patient care. A great deal of bedside care is given by nurses. Nursing-sensitive indicators are factors that rely directly on the nursing care of the patient. Quality nursing care improves patient care and therefore patient outcomes. Nursing-sensitive quality indicators promote patient safety and quality patient care. Since these quality indicators are reflective primarily on bedside care provided by nursing staff it is important that all nursing staff be aware of these indicators and their role in promoting quality patient care. There are specific indicators that could have been taken into account to promote patient
Here is a first hand account of culture, structure and systems not being in harmony. In 1994, Ticketmaster (TM) United States became a major presence in the ticketing industry. As part of their growth strategy, they expanded through the re-acquisition of all licensees. One of the licensees was the Canadian Ticketmaster business. From 1995 to 1997, TM Canada was forced to transform organizationally to become similar to our American parent. The cultural breakdown occurred when transitioning from networked “(high on sociability; low on solidarity)” to mercenary “(low on sociability; high on solidarity)” (Langton & Robbins, 2007, p. #341-342). For example, the lack of accountability
Decentralization has several advantages. Staffs are encouraged to develop decision-making skills, which help them advance in their careers. The autonomy afforded by this style of operation also increases job satisfaction and motivation. For example, if maintenance staff receives a complaint on a fault by a customer, in a decentralized organization the maintenance staff has the power to fix the problem without getting the approval from the administration. If that same front maintenance staff determines that a customer has been
In a hyper competitive market, the ability of an organization to respond and adapt to changes i.e. threats from competing firms, they have to spread the decision making power throughout the organization. The disadvantage of this type of decentralized structure is that at some points there might be contradictory decisions being made which would cause conflict within the organization and the success of any unit would depend on the capability of the head, on the other hand, it would be advantageous in the sense that in addition to enabling organizations to respond faster to changes in the market, it also builds confidence of employees and therefore is a means of
The open system leaves the door open for better communication. The open system focuses on the organization and the external possibilities while the closed focuses on internal possibilities when problems occur. The open system is influenced by the environment, which also causes weaknesses in the structure since every day there is change. Environmental changes cause organizational changes. The close system in an organization shows organized structure and order, however, lack structural mobility (“Open Versus Closed Systems,” n.d.).
Bianca, A. (n.d.). The Disadvantages to Centralized Control in a Business. Retrieved from Small Business : http://smallbusiness.chron.com/disadvantages-centralized-control-business-20670.html
In addition, it is essential to generate detailed divisions for merchandise progress and industrial can have an effect on the company’s administrative structure known as product evolution. Centralized management retains all major decisions with one detailed decision-making group, whereas decentralized management lets company managers to have more ‘say’ in the executive process. Next, corporations that participate in the mass production of products may not exert as
Other common terms for the idea of organizational decentralization include: team self-management, self-management, shared control, distributed leadership (Lambe, Webb, & Ishida, 2009) and holacracy (Robertson, 2007). While these terms may have small differences they all describe the common theme of distributing power across organizations. Several concepts help to explain why decentralization and the encouragement of teamwork throughout an organization are often superior to traditional management structure.
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
In a centralized organizational structure one individual is responsible for making all the decisions and maintains control of the company by giving direction. While Decentralized organizational structures often rely on several persons with the authority to make final decision for the company’s well being. Some benefits associated with a centralized organization are as follows: Reduction in cost in the work environment, having a focused vision on one common goal and Reduction in conflict. A Few drawbacks of a centralized organization include, No secrecy because all ideas and decisions are conveyed to all, No special attention and Delay in work. Advantages associated with Decentralization are; Huge relief is provided off the top managers, Greater use is made of employees skills and Decision making is left up to educational and well informed people.
Organizations are open systems and must relate to their environments. They must acquire the resources and information needed to function; they must deliver products or services that are valued by customers. An organization 's strategy--how it acquires resources and delivers outputs--is shaped by particular aspects, and features of the environment. Thus, organizations can devise a number of responses for managing environmental interfaces, from internal administrative responses, such as creating special units to scan the environment, to external ,collective responses, such as forming strategic alliances with other organizations.
M2: Analyse the advantages and disadvantages of the interrelationships between organizational functions and its impact that can have upon organizational structure.