Relationship of Centralization to Other Structural Properties
The specific topic of the article is to examine two different ways of distribution of power in an organization and computing the relationship between the three main structural properties of the organization which includes formalization, complexity and centralization.
The authors have done extensive research on sixteen welfare and health organizations and have developed a framework, which establishes a relationship between the structures of the organization with the level of complexity and rules that governs the organization. The sociology background of the authors Michael Aiken and Jerald Hage …show more content…
Centralization: It is the concentration of power of decision making in the top level of the organisation.
It is essential to identify that relationship exists between the three elements.
Centralization and Complexity : There exist an inverse relationship between them. Decentralization is associated with high complexity.
Centralization & Formalization: The relationship between them is ambiguous. High formalization can be coupled with either a centralized or decentralized structure.
Formalization and Complexity: There exist an inverse relationship between these two.
The data captured as a part of this study establishes relationship between Centralization, Formalization and Complexity :
The Hypotheses are:
1) Less Centralization Less Formalization
2) Less Centralization Greater complexity
Employees in flat organizational hierarchies describe their job responsibilities as "more adequate" than employees in tall hierarchies. Individuals who work in organizations with many formal hierarchical levels tend to perform jobs that were more "complex" i.e., requiring thought and independent judgment than employees who worked in firms with few hierarchical levels.
The decentralized arrangement relies upon the skills and expertise of its members. Employees can be empowered by having more autonomy to make their own decisions, giving them a