Centralization and decentralization: What functions should be centralized?

Centralization and decentralization: What functions should be centralized?

Structure. Use the concepts you learned about in your reading of structure and lateral capability to create an organizational structure to fit this strategy. How does the structure follow from the strategy? What are the major divisions of your organization and what are they responsible for? How many employees work in each division, and how are divisions structured? To answer these questions it may be helpful to create an organizational chart for your organization.

Centralization and decentralization: What functions should be centralized?

In addition to describing how you have organized your departments, consider these other important elements of organization structure:

  1. Centralization and decentralization: What functions should be centralized? Where should decision making be decentralized?
  2. Span of control: Will your organization have a wide or narrow span of control? How many management and leadership roles do you anticipate for your organization?
  3. Division of labor: What jobs require deep specialization? Which require low specialization?

What are the advantages and disadvantages of this structure? Knowing what we have learned about various structure types and their advantages and disadvantages, what potential problems can you anticipate from this structure?

Process & Lateral Capability. Given your chosen structure and the flaws you identified in it, what lateral capabilities are required for your organization? Describe where you would implement less formal mechanisms (i.e. low lateral capability) or where you would choose more formal mechanisms (i.e., high lateral capability).

Consider, for example, the types of lateral capability we studied:

  • What informal networks you would foster and how you would do that
  • The organization’s major cross-functional processes, opportunities for shared goals, or what technology coordination mechanisms you would implement.
  • Where teams may be required, if at all.
  • Would you have any integrative roles? Why, and what would those roles accomplish?
  • Would a matrix organization be appropriate? Why or why not? What dimensions of the matrix would you select?

Finally, why did you select these lateral coordinating mechanisms? What disadvantages of the structure are solved here? How are these consistent with the rest of the STAR?