Question

How does organizational behavior typically differ in a centralized organization vs. in a decentralized organization? Based on your answer , which best describes your past or present organization's structure? Please explain your answer.

Answer 1

In a centralised organization the authority to take decisions is with the management solely and hence every employee need to go to the management even for everyday activities. In a decentralised organization power to take decisions vests with some other people other than the management and some decisions like day to day activities are taken by managers. In centralised organization every point of organization need to go for the management for their decisions where as in a decentralised organization teams are handled by their managers to whom they report. In centralised structure there is no scope for any change or innovation whereas in decentralised organizations innovation is encouraged. Many organizations in today's world are decentralised because of their global operations where managers are present at every level and decisions are taken at each point rather than a hierarchy. Many organizations such as Microsoft works in teams where there are managers to whom the teams report and the management to whom these managers report.