A centralized organization concentrates decision making at the top of its hierarchy.
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Student 4 months ago In centralized organizations, top managers make all the decisions, and lower-level managers merely carry out their directives. True or False? All replies Expert Answer 2 months ago False. An organization where organizational hierarchy concentrates solely within the top management is termed a centralized organization. Every activity is bound by certain restricted rules and policies under this organizational form. Only the top management has the sole power of making a decision that needs to be followed by every employee. Every subordinate and lower-level management under this organizational form is bound to follow those directions of the top management with complete adherence to the organizational rules and procedures. So the aforesaid statement is false. Related Answered QuestionsHow Expert Q&A works: Ask your study questions to our Experts. Receive an answer explained step-by-step. Get your answer as fast as 30 minutes. Organizational structure refers to the way an organization establishes authority, responsibility and communication within the organization. It defines reporting relationships, lines of authority, job positions and responsibilities, and reflects an organization's environment and culture. Bureaucratic and flat organizational structures are two of the most common types of organizational structures. As the name suggests, bureaucratic organizational structure has many levels and hierarchies. Flat organizational charts are more compressed. Differences in Organizational CharacteristicsRoutine, specialization and formal rules and procedures characterize bureaucratic structures. Bureaucratic organizations focus on efficiency, chain of command, policy and stringent regulations to improve effectiveness and deliver results, according to the Indeed Career Guide. The U.S. military is a bureaucratic structure example. Bureaucratic organizations assign individuals specialized duties and routinely monitor their performance to ensure consistency. Communication within a bureaucratic structure is formal and commonly relies on written messages, reports and memos. Flatter organizations, on the other hand, hold that flexibility and autonomy are more effective in realizing organizational goals. Flat organizations are more unstructured and encourage employees to be creative and find out-of-the-box solutions for problems. Communication in flat organizations is informal and much of it entails face-to-face meetings. Organizational LayersBureaucratic structures typically have multiple hierarchical layers with power flowing from the upper layers to the lowest. The number of layers varies between different organizations. It is common for larger companies to have more than five layers, while smaller businesses may have two or three layers only. Flat organizations have fewer layers than bureaucratic structures and the distance is relatively short between the topmost layer, which comprises the company CEO or president, and the lowest layer, explains Forbes. Centralized vs. DecentralizedBureaucratic organizations are centralized structures while flat organizations are decentralized structures. The bureaucratic organization's list of decision makers gets smaller toward the top of the organization chart. Centralized structures imply that authority and decision-making concentrates within a select few individuals – typically the company CEO and his core team. The remaining members of the bureaucracy structured organization take orders directly from the top and have limited say in decision-making. Conversely, decentralized structure implies that management authorizes individuals at lower organizational levels to make decisions. The organizational chart is flat because decision making is horizontally distributed. Other ConsiderationsLarger companies typically use the bureaucratic organizational structure for the multitude of strengths it offers. The bureaucracy structured organization focuses on standardization, administrative efficiency, control and coordination, and a clear management structure. The weaknesses of bureaucratic structures are slower decision-making, high levels of supervisor and managerial overheads, lack of employee freedom and lower employee morale. Flatter structures are common to smaller organizations. Communication is clear and quick, job satisfaction and employee morale is higher, and decision-making is easier. Management structure is unclear in a flat structure, an employee may report to multiple supervisors, and the structure is unfeasible for large organizations. What is a centralized hierarchy?A centralized organization is a hierarchical decision-making structure where all processes and decisions are made at the executive or top level. Managers and employees in the organization's lower chain of command can rarely make or implement decisions without the executive's approval.
Is hierarchical structure centralized or decentralized?A hierarchical organization concentrates authority exclusively with one person or leadership team, so that vertical top-down communication flow allows for uniformity of action. Small businesses in which the owner manages the firm, often adopt this centralized approach.
What is it called when decisionOften referred to as command-and-control, top-down management is often the default. In this hierarchical style of management, the power and decision-making generally remain with those at the top (though there might be some input from middle management). Information tends to flow slowly and only in one direction.
In which type of organizational structure is decisiondecentralized organizations. Organizations in which decision-making authority is pushed down to the lowest possible level is a decentralized organizations. In a decentralized organization authority and power are delegated to lower levels of employees to empower them with adequate freedom and decision-making capability.
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