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It is extremely important to take into consideration a larger pool of subordinates can equate to efficient cost, but to large a pool generally results in performance issues. Pools of subordinates that are to small make for complex communication sharing within an organization.
5) Centralization and Decentralization – Centralization refers to the process in which decision making is limited. For example, the power of decision-making is at the top level for critical decisions with middle and lower management used for the implementation process of said decisions. Decentralization works in a manner in which there is a delegation of authority at all levels within the organization with top management responsible for major decisions.
6) Formalization – This relates to the degree jobs will be standardized within the organization. When there is a higher degree of formalization, it requires more procedures, rules, as well job descriptions. With a formalized structure it lessens the chance of an employee not knowing what, when, or how their job is to be performed. A lower level of formalization is less restricted, but requires employees that can work with little supervision (Robbins & Coulter, …show more content…
Within this organization is the understanding that a junior employee can go head-to-head with the most senior individual on fact-based decisions, thus over ruling the established hierarchy. Fact-based decisions are just that, they are supported by data, statistics, or a combination of both. However, more intuitive decisions are reserved for the executives.
Decision-making within the Amazon organization is just one element of organizational structure that is reflective of their formalization. The formalization within the organization is structured, but not to a strangling degree. There is a job to be done and everyone within knows what, when, and, how to perform their duties. Given Amazon is notorious in hiring the best they are generally successful in procuring dedicated and detail-oriented people that do not require strict formalization. (Deutschman, …show more content…
This multi-level approach opens the door for almost anyone to sell products using their platform. Through the use of this multi-level strategy consumers will find direct sale merchandise from Amazon in addition to merchandise from third-part sellers, small companies, individuals, and retailers. Behind the e-commerce success is the four-software development centers that are continually creating new web features and developing the supporting technology. This development comes at the cost of millions of dollars and hundreds of man-hours, which are expanded annually in an attempt to enhance the online experiences of the consumer while offering convince, a large selection, and low prices (Layton, 2013). Given the success and golden touch of Amazon, it is difficult to upturn a design strategy that is not working well for this
5) Centralization and Decentralization – Centralization refers to the process in which decision making is limited. For example, the power of decision-making is at the top level for critical decisions with middle and lower management used for the implementation process of said decisions. Decentralization works in a manner in which there is a delegation of authority at all levels within the organization with top management responsible for major decisions.
6) Formalization – This relates to the degree jobs will be standardized within the organization. When there is a higher degree of formalization, it requires more procedures, rules, as well job descriptions. With a formalized structure it lessens the chance of an employee not knowing what, when, or how their job is to be performed. A lower level of formalization is less restricted, but requires employees that can work with little supervision (Robbins & Coulter, …show more content…
Within this organization is the understanding that a junior employee can go head-to-head with the most senior individual on fact-based decisions, thus over ruling the established hierarchy. Fact-based decisions are just that, they are supported by data, statistics, or a combination of both. However, more intuitive decisions are reserved for the executives.
Decision-making within the Amazon organization is just one element of organizational structure that is reflective of their formalization. The formalization within the organization is structured, but not to a strangling degree. There is a job to be done and everyone within knows what, when, and, how to perform their duties. Given Amazon is notorious in hiring the best they are generally successful in procuring dedicated and detail-oriented people that do not require strict formalization. (Deutschman, …show more content…
This multi-level approach opens the door for almost anyone to sell products using their platform. Through the use of this multi-level strategy consumers will find direct sale merchandise from Amazon in addition to merchandise from third-part sellers, small companies, individuals, and retailers. Behind the e-commerce success is the four-software development centers that are continually creating new web features and developing the supporting technology. This development comes at the cost of millions of dollars and hundreds of man-hours, which are expanded annually in an attempt to enhance the online experiences of the consumer while offering convince, a large selection, and low prices (Layton, 2013). Given the success and golden touch of Amazon, it is difficult to upturn a design strategy that is not working well for this