Centralized Versus Decentralized Structure. Centralization and decentralization pertain to the hierarchical level at which decisions are made. In a mechanistic design, the structure is centralized, whereas an organic design uses
decentralized decision making. Centralization means that decision authority is
located near the top of the organizational hierarchy. Knowledge and control
of activities are centralized at the top of the organization, and employees are
expected to do as they are told. With decentralization, decision making authority is pushed down to lower organizational levels. In a highly organic organization, knowledge and control of activities are located with employees rather
than with supervisors or top executives. People are encouraged to take care of
problems by working with one another and with customers, using their discretion to make decisions.
Centralized Versus Decentralized Structure. Centralization and decentralization pertain to the hierarchical level at which decisions are made. In a mechanistic design, the structure is centralized, whereas an organic design uses decentralized decision making. Centralization means that decision authority is located near the top of the organizational hierarchy. Knowledge and control of activities are centralized at the top of the organization, and employees are expected to do as they are told. With decentralization, decision making authority is pushed down to lower organizational levels. In a highly organic organization, knowledge and control of activities are located with employees rather than with supervisors or top executives. People are encouraged to take care of problems by working with one another and with customers, using their discretion to make decisions.
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