Centralisation
versus decentralisation of structures
Not all structural changes that happen as a
result of the implementation of innovation or new technology
are seen as positive by all of the parties involved.
Many people have argued that new technology inevitably results in more highly centralised, huge, bureaucratically structured firms wherein most people's jobs are routine, mindless machine-tending or data entry tasks, while all of the power and decision-making becomes concentrated in the hands of a few "men at the top". Some people have suggested that new manufacturing technology, for example, brings increased physical distance between work stations. It is suggested that such structural changes result in increased social isolation and increased interaction with machines rather than people.
It has been my contention throughout this manual that technology is neutral - it is our decisions that are loaded. Innovation and new technology does not have any inevitable consequences in terms of the centralisation or decentralisation of power, authority and/or decision-making. Research has shown consistently that the decisions we make about new technologies affect the size and composition of the work crew, as well as the physical and technical environment in which they operate, thus forever changing the interpersonal relations and the social/informal structures of the firms and work groups. The effects are the result of choices and decisions of people in organisations.
Computers can be used to promote centralisation, making vast amounts of information available to senior managers. Computers can be used to seize greater control and to eliminate the independence of the trades and sub-contractors. Computers can be used to help organisations manage turbulence in their environments by bringing under control suppliers, distributors, or competitors. On the other hand, organisations can attempt to manage turbulence in their environments by seeking distinctive competence, by decentralising decision-making, and by empowering people and sub-units with information and greater freedom to deal with local developments.
The choice is yours.
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Holistic Management Pty. Ltd.