What are the advantages and disadvantages of having an informal workplace? What are the advantages and disadvantages of having a formal work place?
When the company has an informal workplace, this company may have a low degree of centralization. The centralization of authority is the location of most authority at the upper levels of the organization. In other word, if the company has low degree of centralization, it is decentralization, which is the location of a significant amount of authority in the lower levels of the organization. There are many advantages of decentralization. When the workplace in the company is informal, it develops employee capabilities throughout the company and leads to faster decision making and more satisfied customers and employees. Company with high degree of decentralization comes out better numbers of assets, return on investment, return on equity and return on sales than the company with low degree of decentralization. But on the other side, decentralization also has disadvantages. As it mentioned in the article, an informal workplace atmosphere may lead to the misunderstanding of the customers. What’s more, the less authority of the upper levels of the organization may increase the difficulty of making decision and leading employee for the managers.
For the formal workplace, the company has formal workplace may have a high degree of centralization. Wearing the suits is an example of standardization. Standardization is solving problems by consistently applying the same rules, procedures, and processes. When a company’s workplace is formal, this will make the company looks more professional and reliable. And with standardization, the process of the working will be easier to follow. While the disadvantages are also clear, the high degree of centralization would cause the difficulty in communication between upper levels and lower levels. This slows down the step the company develops itself. 2. As the manager of this firm,...
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