Basic Management Topics and stuff....

1. Prepared by,
Malay m. patel

2.  Centralization is the degree to which decision
making takes place at upper levels of the
organization.
 If top managers make key decision with little
input from below, then the organization is
more centralized.
 Keep in mind that centralization is relative,
not absolute- that is, an organization is never
completely centralized.

3. •More Centralization
 Environment is stable.
 Lower-level managers are not as capable or experienced at
making decisions as upper-level managers.
 Lower-level managers do not want to have a say in
decisions.
 Decisions are relatively minor.
 Organization is facing a crisis or the risk of company
failure.
 Company is large.
 Effective implementation of company strategies depends on
managers retaining say over what happens.

5.  A decentralized organization is one in which
decision making is not confined to a few top executives
but rather is throughout the organization, with
managers at various levels making key operating
decisions relating to their sphere of responsibility.

6. •More Decentralization
 Environment is complex, uncertain.
 Lower-level managers are capable and experienced at
making decisions.
 Lower-level managers want a voice in decisions.
 Decisions are significant.
 Corporate culture is open to allowing managers to have a
say in what happens.
 Company is geographically dispersed.
 Effective implementation of company strategies depends
on managers having involvement and flexibility to make
decisions.

7. Today’s View :-
As organization have become more flexible and
responsive to environmental trades, there’s been a
distinct shift towards decentralization decision
making. This is also known as employee
empowerment, which is giving employees more
authority to make a decision.

9. Content
 What is Formalization ?
 Advantages & Disadvantages
 Today’s view about it

10. Elements of
Organizational
Structure
What is Formalization ?
• Formalization is the extent to which rules and procedures are
followed in an organization.
•The degree to which organizations standardize behavior through
rules, procedures, formal training, and related mechanisms.
Span of Control
Centralization
Departmentalization
Formalization

11. Advantages :-
• Formalization makes the process of succession routine.
• Increase the rationality of organization.
• Make explicit and visible the structure of relationships
among organizational participants.

12. Disadvantages :-
• Employees are not allowed to exercise their own
judgment.
• Discrimination of work load between employees.
• Formal structures are the norms and behaviours that
exist regardless of individuals involvement.

13. Today’s view about Formalization :-
Although some formalization is necessary for consistency
and control, many organizations today rely less on strict
rules and standardization to guide and regulate employee
behavior.