BUS 1 Chapter Notes - Chapter 10: Hierarchical Organization, Temporary Work
Document Summary
Top management makes most of the key decisions in the organization: little input from lower-level employees. Centralization lets top managers develop a broad view of operations and exercise tight financial controls. Decentralized organization, decision-making authority is pushed down the organizational hierarchy: giving lower-level personnel more responsibility and power to make and implement decisions. Decentralization can result in faster decision-making and increased innovation and responsiveness to customer preferences. Organic organization low degree of work specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision-making, and a short chain of command: this combination of elements results in a flat organizational structure. Informal organization connections and channels of communication based on the informal relationships of individuals inside the organization. I: can be between people at the same hierarchical level or between people at different levels and in different departments, gives employees more control over their work environment.
