MGT504 Organization Theory & Design Assignment 01 Fall 2020 Solution / Discussion
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Is it easy for an origination to turnaround from decentralization to centralization within a short period of time? Give strong reasons.
According to my thinking it is not easy thing to de-centralized from centralized position in short time period. Decentralization or de-centralization is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.
Centralization refers to the level of hierarchy with authority to make decision. In centralized organizations, decision,
tends to be made at the top, in decentralized originations, similar decisions would be made at lower level.
Decentralization represents a paradox because, in the perfect bureaucracy, all decision would be made by the top
administrator, who would have perfect control. However, as an organization grows larger and has more people and
departments, decision cannot be passed to the top, or senior manager would be overloaded. Thus, the research on
organization size indicates that larger organization permit greater decentralization. Hewlett-Packard decentralization
almost every aspect of its business to speed up decision making in small startup organizations, on the other hand,
the founder or top executive is often involved in every decisions, large and small.
Should the managers accept the decision of CEO? Why or why not, give rationale.
In some cases it is must and in some cases it is not must because if the decision is in favor of organization then it should be accepted and must but if any decision is against the favor of organization then it may cause negative effects to the organization.
No matter where a company is located or what it makes, its CEO must develop a guiding, over-arching philosophy about how he or she can best add value. This philosophy determines the CEO’s approach to leadership. By approach, we mean which areas of corporate policy—for example, strategic planning, R&D, or recruiting—receive the most attention, what kind of people and behaviors the CEO values in the organization, which decisions the CEO makes personally or delegates, and how he or she spends each day. A leadership approach is a coherent, explicit style of management, not a reflection of personal style.