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Organizational Decentralization |
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Mintzberg makes the case for the decentralization of organizational power with his 15th "contingency hypothesis", which states: "The power needs of the members tend to generate structures that are excessively centralized." He shows how this is true of all constituencies within organizations. Senior managers centralize "vertically", taking control over a greater range of decisions. Line managers centralize "horizontally", taking control over a greater number of activities. The organization's operators or production workers attempt to do both, as best they can.
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In as much as this phenomenon is observable in organizations, it would be wise to decentralize control and deregulate authority. But, Mintzberg is careful to warn organizations not to do this just for the sake of it. Those organizations which suffer from under control, a lack of accountability and focus, and too much divergence and diffusion, would certainly benefit from some increased centralization (though not necessarily bureaucracy). The thrust of this advice is that executives should be weary of fashionable organizational structures and one-size-fits-all approaches. Instead, they should examine their current situation, decide where they want to go, and only then decide how to get there.
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Mintzberg, Henry. The Structuring of Organizations. Prentice-Hall Inc. Englewood Cliffs, NJ.1979.
This is the classic text on organizational behaviour and design, and it provides us with a very handy introduction to organizational development. Written by Canada's foremost management thinker -- Henry Mintzberg -- The Structuring of Organizations gives readers a framework and a vocabulary for understanding and describing the many systemic sociological and psychological phenomena which occur in organizations. As such, it empowers readers with a means to redesign their organizations with informed choice.
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