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The Effect of Horizontal Differentiation of the Organization
Spencer Meek
Unit lll
July 12, 2014

Centralized organizations are those in which most of the decision making occurs by a few people at the top of the hierarchy which is why the hierarchy begins to emerge when signs of problems with coordinating and motivating employees within their organization. This will then create a top-down management structure where the managers strongly control the direction of the workplace by using their quick decision skills and supervision. However with an organization that has a decentralized structure, this will allow greater decision-making along with authority at a lower organizational level. With decentralization there will be less direct managerial supervision that will be needed. It does not eliminate the need for so many hierarchical levels within large complex organizations but rather assisting to tall structures to be more flexible while reducing the amount of the direct supervision that may or may not be needed.
Horizontal differentiated organizations are divided into subunits that have a variety of hierarchies and each division has its own hierarchy. It is also the principle way in which an organization will control their employees without raising the number of its hierarchical levels. Standardization will reduce the need for levels of management mainly because its rules will substitute for direct supervision gaining control over employees. By doing this it will make the behavior and actions of each employee more predictable. Tasks given are then controlled through rules, SOPs and norms while the rules eliminate direct supervision and management can delegate responsibility with subordinates knowing these rules. When it comes to informal organization it can affect the way the formal hierarchy works. When discussing formal organizations the decisions made and the

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