Relationship of Centralization to
Other Structural Properties
Review By: Group W1
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. Decision making can be done in two ways:
1) Decision making regarding the allocation of resources
2) Determination 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, no of professional trainings and amount of professional activities.
The target audience for this includes the decision makers who are the part of the organization.Since these come to the conclusion about the organizational policy,that form the majority of the target audience.Target audience also includes people who help in achieving the organizational goals.It includes private firms as well as governmental organisation.Government organisations are included as they can impose certain rules and regulations on the organization regarding the complexity and centralization.
1)the author assumes that certain organizations have inadequate employee behaviour and hence they impose the complexity in those organizations 2)there are certain organizations which don’t have well formaulated rules and policies,hence formalization is important 3)there are certain organizations which dnt hve well defined decision making procedure and land up with wrong decisions,in that case we require centralizations.
1)competitive advantage for any organization
2)better functioning of the organization
3) emphasize both radical and incremental innovations and both product and process...
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