Impact Of Centralization And Decentralization Of Ford

One of the key elements in an organizational design is centralization and decentralization. These two elements are related to the decision making of the company. Decision-making is about authority; whether it should involve only the senior management at the center of a business or vice-versa. An association can either be centralized, in which the degree of decision making is focused on the higher level of organization and the sources are allocated at the central authority, or decentralized in which power is assigned down the ranks. Centralization which is also called as command-and-control, is formerly the most typical structure for nearly all company. This structure lean on the company’s owner or higher-level executives to make most of the decisions and assigning work downward through the organization.
As for our chosen …show more content…
This situation has results in new organizational culture towards the company. Thus, it contributes to a part of the company’s success as it encourages Ford’s employees to value the differences in each other’s background, experience, knowledge and skills as well as maximizing their professional and personal growth; also increasing the benefits derived from their diverse workplace. An overall perspective of the organization is bureaucratic and mechanistic in nature. However, like other known company, this company also must deal with the mega environment that can affects their performance. Those factors and forces outside of the organization can be either opportunities or threat to them. For instance, governmental are supporting the technological innovation hence this is considered as opportunity for the company. On socio-cultural side, the increasing of demand for hybrid and electric automobiles are also opportunity offered to them. By providing products that address to demand and satisfying the customer’s changing preferences, it can make Ford