...of the future and point out that decentralization is usually conducive to superior patterns in decision-making In a centralized organization , all decisions come through a single chain of command . The manager always knows who to report to and in what hierarchy this or that question will be resolved , at least ideally . This clear pattern is fuzzier at a decentralized organization where decision-making is dispersed through a number of different channels and occurs in a less strictly regulated manner . This difference has also to do with information management as information can rise up a single line as in centralized organizations , or flow according to a more complex pattern , according to the decentralized one . Centralization is connected with a narrow span of control and a tall hierarchy in contrast decentralization is associated with a flat hierarchy with a wide span of control (Simon 1994 , .34 This will argue that decentralization is a visible trend in modern organizations , although it cannot be expected to replace all centralized organizations in the short run . Corporate revamping is a slow and painstaking process , and centralized governance does have advantages However , the `fashionable ' customer focus and the need for flexibility that come to the fore in today 's business as well as other trends give managers reason to switch to decentralized patterns . The first sections deal with advantages brought by decentralization and the factors that lead to the...
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... The Growth in size, functions and administrative procedures of the military have presented a challenge to the managers of the organisation. And like any organisation, the military has its objectives, which may be broad, specific, simple or complex. For these objectives to be successfully accomplished, there should be the delegation of authority and managerial responsibility for specific functions to agencies outside the central structure. This decentralization distributes authority to the smallest practical unit but at the same time keeps reasonable controls to ensure that all units are working toward the same organisational objectives. The objectives of the decentralization is to share the responsibility for making and/or implementing decision on public services with a larger number of actors, either within the same organisation (deconcentration) or different organisations (devolution) in the public sector or with actors outside of the state sector altogether. This paper, therefore, attempts to examine the concept of delegation, control and decision-making in organisations with particular reference to the military. Definition of Key Concepts For our purpose the following concepts are operationally defined – effective delegation, control and decision-making. i. Effective Delegation: This may mean an effective decentralization of authority and responsibility for specific functions to units outside the central structure. The units enjoy varying degrees...
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...context and structure into a natural integration. For instance, some organisations achieve integration through product innovation while others achieve through efficient machines. However, in recent years, Mintzberg has come to realize that not all effective organizations slot themselves in the any of the above forms. Instead, some organizations have opted to take their own courses to solve their unique problems. Mintzberg’s thus proposes a mix of these two frameworks in order to achieve ultimate effectiveness. This paper will review the configurations model, and review Mintzberg’s modified views on the model. Configurations Model Different organisations operate differently and the results of similar strategies may not be the same across organisations. An organisation may achieve commendable success by using strict controls while a similar organization would fail terribly by employing the same structure. This is one of the reasons why start-up businesses have to evolve their structure as they grow in line with the changes in both structure and environment (Brickley, Smith, Zimmerman and Willett 2002). Successful companies successfully integrate and coordinate core internal and external elements. Determining the best structure can be tricky especially because there are so many factors at play, as well as possible combinations. According to Mintzberg (1989), the structure of an organisation emerges, from the structure itself,...
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...Salfordia’s current organizational culture ,team dynamic ,leadership ,status and make proposals that would help transform Salfordia current organizational culture, leader etc. to modern standard organization. The principal finding of this report as, adopted by Salfordia in there organizational structure Adhocracy which has the support staff as its key part, using informal communication (mutual adjustment) as it means of coordination. . Information and decision processes flow flexibly and informally and uses selective patterns of decentralization. . Using Adhocracy Salfordia have the tendency to hire and give power to professionals whose speciality is required to promote the company’s productivity thereby making profit unlike the professional Bureaucracy, the Adhocracy cannot rely on the standardized skills of experts in other to achieve coordination(Mintzberg 1983). Finally this report recommends that Salfordia should undergo Kolb’s organisation learning cycle which would help them even in acquiring more experience and boarding there knowledge on other procurement system. And they should consider procuring contracts using other forms of procurement system like partnering 2.0 TABLE OF CONTENT 1.0 Executive...
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...company. For example, different department managers have different view and plan about CV305 and they becoming uncommunicative. Julie Crandell as an executive vice-president, she likes to keep tight control over the organisation and department managers have to check with her before making major decisions. This report analyses Malard Manufacturing Company’s the organization part of the management process and the two communication issues in company. Then it will offer some recommendations on what Julie can be done to address this problem and make each department work together to achieve goals. Many issues include organization structure and inappropriateness of communication between departments, managers and leaders in development of productions. It is suggested that It is suggested that adopt formal strategies that focus on successful production of CV305 in order to keep the company in an advantage place in the control valve industry. Long-term collaboration between each department will gain company a foreseeable future. 2 discussion 2.1 Organization structure Organizing is one of management of process and its process leads to the creation of organisation structure, which defines “the way tasks are divided and resources deployed”. ( textbook ) In general, Organisation structure is...
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...Transforming Organizational Structure Introduction In the business world, organizational change is a daily reality especially with new technologies and processes such as ‘just in time’ manufacturing, e-commerce, virtual organizations, and six sigma to name a few. In order for companies to survive and thrive, they must continually adapt to the market or make internal improvements of service or culture The Encyclopedia of Business defines an organizational structure as "comprised of functions, relationships, responsibilities, authorities, and communications of individuals within each department." An organizational chart is often used to provide a visual representation of a program's structure. Having a clear structure is critical for employees to know how their job relates to others in the department as well as to the institution's mission and goals. Source : by Dr. Betsy Alden Originally printed in Athletic Management, 22.05 August/September 2010 Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure. In an organization...
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...Introduction A strategy is a plan or policy line of action that is designed to achieve larger purpose. It is a simple framework for understanding the impact of information system (IS) on organisations. The Information Systems Strategy Triangle is a simple framework for understanding the impact of IS on organizations. Strategy it is also defined as the relationship among business strategy, organizational strategy, and information strategy. Business strategy A business strategy is the means by which it sets out to accomplish its desired end (objectives).it can simply be described as a long term planning. Business strategy may cover a period of about 2-5 years (sometimes even longer. A Business Strategy is a well-articulated vision of where the business seeks to go and how it expects to get there. It is the form by which a business communicates its goals Organisational strategy The organizational strategy is a strategy whereby choices are made, as well as the choices it makes to define, set up, coordinate, and control its work processes. The way a business is organized either supports the implementation of its business strategy or it gets in the way. Organizational and Information Strategy are then dependent upon the Business Strategy, they must counterpart each other. Organizational strategy is a clear definition of how the organization needs to change over time in order to be able to deliver the strategy of the enterprise and an actionable plan of how to make the transformation...
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...is the right to give commands, orders and get the things done. The top level management has greatest authority. Authority always flows from top to bottom. It explains how a superior gets work done from his subordinate by clearly explaining what is expected of him and how he should go about it. Authority should be accompanied with an equal amount of responsibility. Delegating the authority to someone else doesn’t imply escaping from accountability. Accountability still rest with the person having the utmost authority. Definitions : According to Henri Fayol, “Authority is the right to give orders and the power to exact obedience.” According to Mooney and Reily, “Authority is the principle at the root of Organisation and so important that it is impossible to conceive of an Organisation at all unless some person or persons are in a position to require action of others.” According to Koontz and O’Donnell, “Authority is the power to command, to act or not to act in a manner deemed by the possessor of the authority to further enterprise or departmental performance”. Characteristics of Authority : The main characteristics of authority are given below : (i) Authority is vested in organisational positions they hold, not in people. (ii) Authority flows from top to down in a vertical hierarchy. (iii) Authority can be delegated and is accepted by subordinates. (iv) Authority is the right to act and the power to make decisions. (v) Authority is seen as the ligitimate right of a person to...
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...Organisational Structure In a centralised organisation head office will retain the major responsibilities and powers. Decentralised organisations will spread responsibility for decisions across various outlets and lower level managers, including branches. Decision-making is about authority. The key question will always be whether responsibility should remain with senior management at the centre of a business (centralised), or whether it should be distributed further away from the centre (decentralised) An example of a decentralised structure is Tesco the supermarket. Each Tesco has a store manager who can make certain decisions concerning their store. The store manager is then responsible to a regional manager. Most large businesses have a certain amount of decentralisation when it starts to operate from several locations. Fast-food outlets like Burger King, Pizza Hut and McDonalds use a centralised structure to ensure that control is maintained over the outlets. The reasoning behind this making sure every store is the same. The organisational structure for Tescos is a decentralised structure, meaning that it is flat. This means that the authority is devolved 'down the line' and people at the lower end of the scale of power can make decisions about what happens within the store. So Tesco's provide the framework and the information regarding pricing, layout, staff terms etc, but the rest can operate flexibly to a certain degree within that branch. With this style of management...
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...point." This definition makes it clear that even in decentralisation, delegation to the lowest levels is not complete as the basic functions in the management process are centralized. level of standardization—both within and across markets—the greater the possible level of global efficiency Globalization 3.0, major software advances have allowed an unprecedented number of people worldwide to work together with unlimited potential. Advantages / Importance of Decentralization 1. Decentralisation helps to improve the quality of decisions/decision-making at the top level management : Decentralisation of authority among other executives at all levels in the Organisation relieves the top executive of the excessive burden saving his valuable time, which he can devote to more important and long-term problems. This is bound to improve the quality of his decisions regarding such problems. 2. Decentralisation facilitates diversification of activities : It is a matter of common experience that an Organisation with departmentation on the basis of products facilitates diversification of products or market even when the authority is centralized. Decentralisation takes this process a step further. Managers of semi-autonomous product divisions are able to utilise their skills and experienced judgment. This has a bearing on their products and the market. The enterprise also attains maximum possible growth. Decentralisation is beneficial when new product lines or new activities are...
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...products orders. From the begging of activity KCC was a Company that had little competition and high margin rate. However, since 1999 the Company faces some cash and business issues related to the new loan, the new competitors on the market and the worldwide recession. At that point of time Kevin realized that in order to keep the business in good shape new changes should be done . This changes are to solve the main strategic issues the company faces, which include: eroding profit margin, fierce completion, inventory in more than a thousand types of products and parts and rather tight financial situation. Kevin realized that to handle all these issues, the company needs to better understand customer requirements and believed that decentralization could help KCC to achieve success. KCC’s key decisions to reach the success Identify the most important key recurring decisions that must be made effectively for KCC to be successful. In KCC’s functional organization, who had...
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...“The vast majority of corporations are decentralized to a considerable degree. What kinds of organizations are best run in a largely centralized manner, and why?” Corporations nowadays are mainly run under the decentralization concept, where empowerment and appropriate delegation has been given to the lower level i.e. in this case, the Heads of the decentralized units, with regards to the decision making and also in terms of control and monitoring of their respective units. Decentralization has been chosen to reduce the burden at the corporate level and also to ease the running of the business so that some decisions can be made efficiently without many layers of approving authority. Nevertheless, the performance of the respective decentralized units will still be measured as per the targets that have been set earlier and with the agreement between the top management and the lower level. Also, there ...
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...ACCG330: Strategic Management Accounting LECTURE 12 CONTROL PROBLEMS AND PRACTICES IN MULTINATIONAL ORGANISATIONS ACCG330 Readings: Anthony & Govindarajan (2007, pp.678-696) ACCG330 Strategic Management Accounting Session 1, 2012 Learning Objectives 1. Describe management control problems and practices in multinational corporations. 2. Explain problems and issues associated with global organisations: i. Cultural differences and their impact on management controls. ii. Transfer pricing and related issues in multinational corporations. iii. Effects of exchange rates on multinational corporations and control system design issues. ACCG330 Strategic Management Accounting Session 1, 2012 1 Nature of Multinational Corporations (MNCs) • What is a Multinational Corporation? – A corporation that owns and operates production facilities in two or more countries. OR – A corporation with power to coordinate and control operations in two or more countries without owning them. • Typically have Headquarters in the country of origin • Build or acquire affiliates or subsidiaries in other countries (the host nation) ACCG330 Strategic Management Accounting Session 1, 2012 Basic Structures of MNCs • A number of basic structures exist that permit an MNC to operate and compete internationally – Structure must meet the need of both the local market and the home-office strategy of globalization – Basic structures of MNCs: • Domestic structure plus foreign subsidiary...
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...Learning Outcomes Follow this Learning Outline as you read and study this chapter Organisational Structure and Design . 9.1 Defining Organizational Structure • • Describe each of the five forms of departmentalization. • Differentiate, authority, responsibility, and unity of command. • Sandra Carlos Discuss the traditional and contemporary views of work specialization, chain of command, and span of control. Explain how centralization – decentralization and formalization are used in organizational design. Organising 9.2 Mechanistic and Organic Structures • Contrast mechanistic and organic organizations. • Explain the contingency factors that affect organizational design. o -the process of organising an organisation’s structure o -undergone lots of changes in the last few years 9.3 Common Organizational Designs • Contrast the three traditional organizational designs. • Describe the contemporary organizational designs. • Discuss the organizational design challenges facing managers today. Exhibit 9–1 Purposes of Organizing • Divides work to be done into specific jobs and departments. • Assigns tasks and responsibilities associated with individual jobs. • Coordinates diverse organizational tasks. • Clusters jobs into units. • Establishes relationships among individuals, groups, and departments. • Establishes formal lines of authority. • Allocates and deploys organizational...
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...Ques.-:Write a note on any one organisation whole restructuring process? Before start the restructuring process about any organization let we know brief description about the restructuring process. Introduction to Restructuring process Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Alternate reasons for restructuring include a change of ownership or ownership structure, demerger or a response to a crisis or major change in the business such as bankruptcy repositioning or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring. Name of the Organization – STATE BANK OF INDIA [pic] [pic] Introduction to SBI The State Bank of India (SBI) is the largest Indian banking and financial services company (by turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. SBI has five associate-: • State bank of Hyderabad • State bank of Jaipur • State bank of Mysore • State bank of Patiala • State bank of Travancore ...
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