What Is Organizational Structure?
Read this article for an overview of why a company might select different organizational structures. You will review the elements of an organizational structure, including departmentalization, the chain of command, and the span of control.
Centralization and Decentralization
Centralization refers to the degree to which decision making is concentrated at a single point in the organization.
In a decentralized organization, employees are empowered to make decisions, so action can be taken quickly to solve problems, and employee input is considered. The more lower-level employees have the power to make decisions, the more decentralized an organization is.
In a centralized organization, upper management makes all decisions and lower management is there to carry those decisions out.