There have been a number of different views and notions on the organizational structures and several authors have developed theories that relate to the same (Schein). Of these Max Weber, Heni Fayol and…
It is essential to note that the authors have provided the basic building blocks for management theories and their ideas are effective even now and this is clear from the examples like United Parcel Services which implements the ideas of the authors. The ideas form a basis for building the efficiency on automation, computerization and also scientific management principles and for relatively larger organizations ideas like the fixed hierarchy of authority, and division of labor and defined regulations still hold good in the current work environments. Hence these theories are very effective.
i) Centralized approach: In terms of the centralized approach, there decision making is strong, authoritarian and in a number of cases this is also charismatic. Also here all the controls follow the top-down method hence making the execution decisive and coordinated along with being really fast as well. This method is also helpful in dealing with major issues and changes (Schermerhorn, Hunt and Osborn). However this can prove to be a disadvantage as well as the top management will not always have a clear picture of the events and working conditions in different locations and this can hence lead to issues as well.
ii) Decentralized Approach: On the other hand considering the decentralized approach, it is essential to note that this method uses a bottom – up approach and concentrates on the culture and also learning dynamics (Ricky W Griffin). This method is also based on democratic and participative decision making which is very useful as it deals with all issues and tasks at hand locally without the interference of any management which is not present in the place. The decentralized business approach used in companies extends possible business opportunities for the entire business in terms of product improvement, design, research and expansion. The drawback of using this method is that it can lead to the division of ...
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