Monday, October 17, 2011

Organization Theory 23

In the last blog, we looked at the video of assembly line production of the T-model of ford and attempted understanding the relation between formalization and complexity. In today's blog we begin our discussion about centralization - another dimension of the organizational structure, but we shall approach this discussion on centralization slightly differently given the issues we have to discuss.

It is common knowledge that in a centralixed decision making process, the decisions are concentrated at a single point in an organization - Right? and this could easily be followed by an undersanding that high concentration implies high centralization and vice-versa. Given this simplicity in understanding the concept as a whole, it would be more comprehensive if we talk about the issues that arise in such a simple understanding of centralization!

Lets take for example (an assumption in this case if not real):
Your role say is at a Television channel and you are incharge of identifying the successful and unsuccessful prime time programs. Your boss generally take along you into many meeting that only he would otherwise attend alone. The boss rarely takes any major decision with out your inputs. 

If you look at the scenario above, clearly your role doesnt give you any formal authority to takse such decisions, but informally you are affecting the decisions being made. This arises an interesting question in understanding centralization - "Should we observer the formal authroity or the informal one?"

To get an answer to the question, lets continue understanding other challenges that the way we defined centralization has and then attempt a more comprehensive one.

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