May 22, 2010 1 Comment
Centralization was the best managerial method long time ago, but still some organizations are happy with this kind of set up. Recently, most organizations are transforming from centralized organization going through a multi-divisional set up to reach a loosely-coupled network form (Scott, 2003). Disagreement and conflict more likely to develop within the differentiated and loosely-coupled organization. the disagreement would take place when the part of the loosely-coupled organization act alone away form the organizations strategic objectives. The good part of being a loosely coupled organization is the ease and the flexibility to be more effective and efficient because the organization can quickly matches the environment it works in (Scott, 2003). The environment does not influence the decentralization level of information services but influence the structure of information services across the organization (Olson & Chervany, 1980). Tightly-coupled organizations should be centralized to keep up the link between the managers and the performers. The performers can pre-plan the captivity if the task was well understood prior to performing otherwise more knowledge will be needed that may change the resource allocation (Galbraith, 1974).
Olson, M., & Chervany, N. (1980). The relationship between organizational characteristics and the structure of the information services function. Mis Quarterly, 4(2), 57-68.