Please enable JavaScript.

Coggle requires JavaScript to display documents.

Structuring Organizations for Today´s Challenge (Development of…

- - - - occurs when decision making is concentrated at the
        top level of management.The retailing giant Target, for example, has a very
        centralized form of management.
    - - occurs when decision making is delegated to
        lower-level managers and employees more familiar with local conditions than headquarters management could be.
- - - - Advantages
        
        1.Employees can develop skills in depth and progress within a department as they master more skills.
        2.The company can achieve economies of scale by centralizing all the
        resources it needs and locate various experts in that area.
        3.Employees can coordinate work within the function, and top management can easily direct and control various departments’ activities.
      - Disadvantages
        
        1.Departments may not communicate well. For example, production
        may be so isolated from marketing that it does not get needed feedback
        from customers.
        2.Employees may identify with their department’s goals rather than the
        organization’s.The purchasing department may find a good value
        somewhere and buy a huge volume of goods.
        3.The company’s response to external changes may be slow.
        4.People may not be trained to take different managerial responsibilities;
        rather, they tend to become narrow specialists.
        5.Department members may engage in groupthink (they think alike)
        and may need input from outside to become more creative.