Organisational design Essay Example | Topics and Well Written Essays - 500 words - 1

Organisational design - Essay Example Noncompetitive businesses and institutions such as government controlled administrations mostly thrive on centralised structures. The managers need to consider if they want to achieve the same results where they follow a rigid work routine then they can comfortably rely on a centralised control system. However, if they seek to get the competitive edge, especially if they are in the technology business, then they need to give more autonomy to respective departments and teams. â€Å"†¦a routine technology and a stable environment all tend to be associated with organizations that have greater formalization, specialization and centralisation† (Daft, Murphy, & Willmott, 2010, p. 26) If the managers are in a business that feeds on creative ideas then they need to make their departments autonomous. The tech industry is a prominent example of highly decentralised model because the more innovative and creative their ideas the better their competitive edge. Comparing a government operated tax department with a highly mobilized and competitive firm such as Apple or Samsung would reveal a centralised versus a decentralised business structure. The government department needs to be centralised while tech companies perform better when they are decentralised. Taking the same example a step further where marketing and TV commercials are made for any business. The process needs to be highly decentralised for the initiation of innovative ideas and creative pitch for customers. One thing that bears prime importance in this whole debate is that there are no black and white areas when the managers make a decision. Many organizations usually step on gray areas where there exists a mix of centralised and decentralised chain of command. In fact, decentralised structure poses a paradox for the managers. Giving too much autonomy to a department can be detrimental for the ultimate organizational goals. The head of the business cannot lose control