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Samedaymay30 Peer Response DQ1AB and DQ2 NA8 - Essay Example

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In decentralized companies managers must delegate responsibility to its employees. In my opinion decentralized structures help maintain high employee morale because…
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Samedaymay30 Peer Response DQ1AB and DQ2 NA8
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DQ1 The use of a decentralized organizational structure works best when there is solid leadership from top to bottom. In decentralized companies managers must delegate responsibility to its employees. In my opinion decentralized structures help maintain high employee morale because the workers feel they are of greater importance to the company. When comparing centralized and decentralized companies one must carefully analyze the inherent qualities of the structures themselves to determine its effectiveness (Adamp, 2007). I have personally worked in both centralized and decentralized organizations. It is my opinion that decentralized companies are more effective and productive. The effectiveness of a centralized company is highly dependent on the skills and capabilities of the upper management team. Companies that use a centralized system typically coordinate the efforts of the company from its corporate headquarters (Lexisnexis, 2012). Your example about Ford Company was very informative and aligned with the course discussion.
I agree with you that companies that want to consolidate power at the top utilize the centralized organization structure. A few years ago I worked at a company that used a centralized structure. This organization was very effective because the CEO was a charismatic leader. A charismatic leader is a person that is able to have a profound and extraordinary effect on followers due to his personal abilities (Schermerhorn, Hunt, Osborn, 2003). This CEO had great ideas and he utilized a tremendous strategic approach. The employees did not have power or responsibilities beyond their work duties, but most the employee were happy with the firm because the workers were respected and appreciated. An example of respect in the workplace is using people’s ideas to change or improve work (Heathfield, 2012). I have never worked in a U-form organization, but based on your description of this structure I believe that U-form organizations can be very effective in the business world.
References (2007). Centralization vs. Decentralization. Retrieved May 25, 2012 from
Heathfield, S. (2012). How to Demonstrate Respect at Work. Retrieved May 25, 2012 from (2012). Forms of organization: centralized vs. decentralized Retrieved May 25, 2012 from
Schermerhorn, J., Hunt, J., Osborn, R. (2003). Organizational Leadership (8th ed.). New York: John Wiley & Sons. Read More
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