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Centralization Decision Making
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Centralized
- Management
- Risk involved in both forms
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Decentralized
- Lower-level
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Formalization
- Written policies and procedures
- Removes ambiguity
- Restrictive for innovation
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Departmentalization
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Functional
- Grouped based on function
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Divisional
- Represent products, locations or services
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Hierarchical Levels
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Tall
- Multiple levels
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Flat
- Few management layers
- Span of control
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Combinations
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Mechanistic
- Formalized
- Centralized
-
Organic
- Decentralized
- Flexibile
- Open to innovation
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Contemporary Forms
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Matrix
- Functional + product
- Multiple managers
- Respond to environment
- Improved communication
- Ambiguity
- Role conflict
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Boundaryless
- Departmental barriers eliminated
- Strategic alliances
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Learning
- Acquiring knowledge
- Reflects on learning
- Making changes