Page 37 - Managing Change in Organizations

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Chapter 2 ■ Organization structures: choice and leadership
2 Many believe that the motivation of employees will increase with the higher
degree of discretion and control that they can apply to their work. The oppor-
tunity to make decisions and be involved can help to provide personal satisfac-
tion and commitment for the individual. It is assumed that individual goals will
broadly be in line with those of the corporate organization. In situations of del-
egated power, the matching of personal goals and corporate goals is more likely
to be possible, but delegation can be severely tested in situations where people
work independently of each other. The problem here is to motivate people suf-
ficiently to coordinate their activities without too much central direction.
3 Large or growing organizations need managers who are able to cope with
uncertainty because of the volume of complex tasks that have to be performed.
It is impossible for one person, or small groups of people, to supervise such
complex activities simultaneously. Delegation can therefore assist manage-
ment development by widening the on-the-job skills of managers and hence
provide a number of people who are capable of undertaking senior manage-
ment positions.
4 Delegation generally allows for greater flexibility by providing for less rigid
response to problems at the operative levels in the organization. Decisions do
not have to be referred up the hierarchy.
5 By establishing relatively independent subunits within an organization, where
middle management are held responsible for operations, delegation can result
in improved controls and performance measurements. Accountability can be
identified.
Decisions on the level of centralization and decentralization are neither simple
nor final. They depend on the circumstances and may need reviewing as cir-
cumstances change. Criteria to be considered over and above the points made
above are as follows:
■ The objectives, strategy and technology of the organization.
■ The ability of senior management to develop and implement a new manage-
ment structure.

■ Timing, particularly taking account of other changes in the environment or
within the organization.
■ The skills and attitudes of employees and their commitment to the organization.
■ The size of the organization, including size of divisions and/or units.
■ The geographic dispersion of the organization.
■ Time scales and decision making. Technological, safety or other reasons can
mean that some decisions must be made quickly and locally, although organ-
izations can still establish procedures, policies and guidelines to provide a deci-
sion framework.
■ Relevant external issues such as legislation or central/local government require-
ments.

Thus it is that in practice these are complex criteria that are central to the ques-
tion of how responsive and adaptable organizations can become.

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