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The group, the closest context of the individual in an organization, sifts the information that he receives, influences his behavior and provides him with a good part of the motivations for his behavior. The individual is part of one or more groups within the organization and in them he develops his tasks, fulfills his obligations, performs his different roles and establishes relationships with other members.
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Power is important in organizations and its distribution influences the performance and behavior of its members. The pattern by which power and the ability to make decisions are distributed within an organization can be called the power structure, and 2 extreme types of this structure can be distinguished based on the members who make decisions united by a gradual intermediate continuum: structure centralized power, all decisions are made by a person or a small group of people at the top of the organizational hierarchy; dominated structures "are the most centralized, in which power and control are in the hands of a few, although the reaction of subordinates may be different depending on the case:
- inert power structure, in which subordinates do not wish to have greater decision-making power or control
- elitist power structure, in which subordinates cannot get more power even if they claim it
- Decentralized structure, decisions on the different organizational problems are made by members distributed laterally and vertically at different levels of the organizational hierarchy.
In decentralized power structures, 2 types can be distinguished:
- fractional power structure, those in which power is divided into groups or fractions that sometimes conflict
- Decentralized pluralistic structure, those in which power is dispersed among the members of the organization vertically and horizontally.
The centralization of an organization is an important dimension of its power, control and decision-making structure.
Pugh, Hickson, Hinnings, and Turner (1968) define this dimension as the extent to which the locus of control for making decisions relevant to the organization is confined to the upper levels of the hierarchy. Technological complexity is negatively related to centralization, there is a negative relationship between the size of an organization and its possibilities of functioning with a centralized structure, especially when the type of tasks is not routine and the employees are professionals.
Empirical research has established a series of general trends in determining the relationships between centralization and other structural dimensions of organizations. Centralization shows negative correlations with organizational complexity.
In other words, the more complex and differentiated an organization is, the more difficult it is to maintain a centralized structure. Organizations made up of members who are not professionals tend to show a positive correlation between centralization and the establishment of norms and procedures (formalization and standardization).
When the members are mostly professionals, even at the lowest levels of the organization, a distinction must be made between the formalization of norms on the tasks to be performed and the formalization of norms on the functioning of the organization as a whole. The formalization of norms on the tasks to be carried out is positively related to centralization; while the formalization of norms on the functioning of the organization as a whole shows a negative relationship.
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