Organization & Leadership - Essay

Centralization...?

Referring to the degree of which decision-making is concentrated out of a single point in the organization, more specifically at the top of the levels of management.

Advantages with centralization?

Strong control – ensuring consistent decision-making and adherence to organizational goals

Reduced duplication – prevents employees from working on the same things in different areas or departments..

Disadvantages with centralization?

Slow decision-making – the top doesn’t function as one, meaning the information must go through each level to reach the bottom

Disempowered and unvalued – lack of autonomy and involvement in important decisions.

Decentralization…?

Tend to promote a culture of empowerment, initiative and accountability, where employees are encouraged to take ownership and solve problems locally.

Advantages with decentralization?

Faster decision-making – Solutions being made close to the problem, leading to quicker response.

Employee motivation – More responsibility where job can satisfy and cause creativity and initiative

Disadvantages with decentralization

People in silos – they prioritize their own goal instead of the organizations goal

Management control – encouraging people to take control can overall make it harder for managers to control over different areas or departments.

Horizontal hierarchies in organizations…?

Fosters collaborative and informal culture, where direct communication is encouraged. As employees they might experience greater autonomy and direct sense of contribution, but the career paths might be unclear since employees face a broader range of responsibilities.

Managers can be seen as coaches or strict supervisors – that can result in overload of information due to lack of specific areas.

Advantages of horizontal hierarchy?

Fast communication and decision-making since information can flow fast within the organization to every department.

Disadvantages of horizontal hierarchy?

No specialization – people with higher education have fewer opportunities for a special area.

Potential role confusion – due to everyone being encouraged to responsibility, the roles between employees are unclear and undefined.

Vertical hierarchies in organizations…?

More formal, status-conscious culture, where communication tends to be more formal and filtered through channels. Also providing employees with clear and defined roles within the organization.

Advantages of vertical hierarchy?

Clear carrer path – it offers many promotion opportunities along various levels, depending on education and experience. Even more focus on specialization within different areas and departments.

Disadvantages of vertical hierarchy?

Slow communication – Decision-making top top resulting in it taking time for lower levels to get the information

Limited adaptability – lower levels can’t respond quickly to the changes being made in the external environment.

Ai in organization – Current situation

As a powerful tool, it’s designed to automate specific tasks, analyze data and provide an insight that rises over human capabilities.
For employees this results in some tasks being removed, while letting them focus on more complex, creative and strategic work.

Open opportunities to reduce costs and enhance customer experience through automation even though a challenge is to profit the technology.

Ai in organization – Co-worker

As a virtual assistant might be a good first step, since collaboration between AI and humans can enhance creativity, faster problem-solving and create things beyond human limits.

This opens opportunities for tackling problems previously deemed to be too complex, meanwhile doors into a new market. But fostering a culture of human-Ai collaboration is a challenge.

Ai in organization - Leader

Requires an AI capable of judgment, strategic foresight and understanding of human dynamics. Most likely to lead a team within production targets that changes a company budget based on real-time market changes.

For employees this would mean a big shift In the existing power dynamic, since they now are supposed to report, follow strategics and receive feedback from AI leadership.