Organizational design principles and frameworks

Organizational Design

Decentralization is a process in which the responsibility and authority for some functions are transferred from a central location (be it organization, government, etc.) to communities, the private sector, or regional/local offices. Decentralization can take many forms, as shown in Figure 1. One of the primary requirements of decentralization is delegation which, in a sense, is a more extensive form of decentralization. Delegation means giving more responsibility to other levels to free up resources at the upper organizational levels. Delegation may be done in all types of organizations; and is an important part of managerial and organizational theory. Delegation is passing down responsibility to carry out specific actions; or a shift of decision-making authority from one organizational level to a lower one. This is not abdicating responsibility, but simply allows a shift so that more appropriate resources are used for the particular project or issue (Lannon, 2008).

Part 2 - as noted, matrix structures can be complex because the follow more than one paradigm of operation. The productivity, innovation and creativity may be increased, and managers are more able to solve complex problems through regular interaction. However, according to authors Hax and Majlut, there are several conditions that must be met to consider using a Matrix Organizational Model.

One example that seems appropriate in the contemporary business environment is the pressure for shared resources. Most organizations have downsized as much as possible due to the economic pressures from 2007 on, particularly in it. Cloud computing and other technological advances have reduced the number of it people needed to support an organization. In a matrix system, high efficiency and expertise are needed, which forces the sharing of human resources and professional experience. Using a matrix model, an it person could perform their regular duties while still maintaining a productive relationship with the matrix team. This would be similar with marketing, advertising, and planning personnel as well. By working in teams with the resources available, cohesion occurs that is greater than the sum -- synergism (Hax and Majluf, 1981).