In this way, there is efficient taping of all the skills in the employees as argued by Newstrom (2007). This results in an increase in efficiency and productivity in the organisation. It also makes training more economical for the organisation as cited by McShane & Glinow (2009). As repetition of tasks is prolonged, Richard (1998) indicates that employees start manifesting signs of boredom, exhaustion, strain, increased absenteeism and high turnover. Centralisation and decentralisation in an organisational structure indicate whether an organisation has devolution of power or not.
In a centralised structure McShane & Glinow (2009) show that the lower-level managers do not participate in significant decisions which are rather left to the upper-level managers (McShane & Glinow, 2009). Decision making power is concentrated in the top level of management. Conversely, decision making and authority are distributed down to the grassroots in a decentralised structure (Newstrom, 2007). The lower-level employees have powers to make decisions and autonomy to take action. McShane & Glinow (2009) explain that employees feel part of the organisation and are highly motivated.
Finally, chain of command defines the continuous channel of authority that runs from upper levels to the lowest levels in an organisation specifying who reports to whom (McShane & Glinow, 2009). According to Richard (1998), authority, responsibility and unity of command are the most significant concepts attached to this element. In an organisational structure, departmentalisation is one of the key elements used in classifying and grouping work activities. Firstly, functional departmentalisation classifies jobs by the functions performed like marketing, processing or distributing functions (Richard, 1998).
There is increased coordination and increased efficiencies within
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