References of the people who are in

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Hawkins, John
N. “Centralization, decentralization, recentralization ? Educational
reform in China.” Journal of Educational Administration (2013):
Jan 2018
Webster, Amanda L. Formalisation of an organisational
strucute . 26 September 2017.


The formalized organizational structure
focuses on roles and positions rather than the people in the positions.
Formalization is the process of creating a formalized structure and includes
the maintenance of that formal structure over time (Webster). Formalization is
basically a process of forming a formal structure that is mainly focused on
very defined specific roles and positions instead of the people who are in
positions. It consists of top down reporting is hieratical and contains a decision-making
structure. It is based on explicit, regulations and codified rules. Generally
formalized structure would include multiple layers of supervisor.  Hewlett-Packard consists of informal structure
so differentdepartments of companies meet their own objectives. HP is very
objective based company, it focuses all on the results rather than formalities
as their slogan refers “Make it Matter”.

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Hewlett Packard has had
it quite interesting as Nickerson and Zenger cite that in early 1970s company
had chosen to be decentralized with a lot of smaller divisions and then soon
had three different divisions all working on desktop computers which were not
even compatible with each other. HP then centralized its computer divisions
which resulted not only in compatible desktops but also very high level of
innovation. As reported in 2000 they were a very company centralized
organization dealing things from top as the one the major disadvantages of the
decentralized computing is that there are high chances of inconsistency as the
orders are passed down to lower level managers and this may cost highly to
technical based organizations. As of now, Hewlett-Packard are overall
decentralized as the company’s size is way too big to be centralized and
delegates authority to low level managers, it believes in empowering its
employees as they can also focus mainly on the product required by customers
and their workers will be highly motivated to get the results as there are
higher chances of promotion but the company has not forgotten they came out of
major crisis after choosing a different strategy for the company.

Decentralization is to give power and
authority to the lower and local levels to make decisions (Hawkins). This means decision
making is much more spread out and now has a lot more managers in the hierarchy
than before because there are people at lower level who have authority to make
decisions. Decentralization allows decisions to be made in relation to local
conditions and circumstances. Apart from empowering local managers it also
reduces the daily communication with the head office.  Major advantages include that the local
knowledge comes into the company and it can benefit them with sales and
promotions as they are very well targeted. Most importantly within the
organization there is a a lot of motivation within the workers as there are
high chances of promotion and they tend to work harder hence producing overall
better results for the company.





Starting off with
centralization, Johnson (2008) describes
that “Centralization refers to the hierarchical level within an organization that
has authority to make decisions.”Centralization is the means of having total
control of all the important decisions and sometimes even not so important
decisions, this is when the top positions keep most of the power into their own
hands and do not delegate tasks. Centralization is known to keep control and is
mostly used to keep checks and make sure all the work is being done exactly
according to the wishes of people who are at the top of hierarchy.  Centralization allows you to easily implement
new company policies and practices for the overall organization as higher
authorities do not have to keep so much in mind and can generalize policies or
practices and it also prevents other smaller departments from becoming too
independent. Hewlett-Packard was originally centralized and it gave them a lot
of success as it was founded by two leaders who had a great vision for the
company but soon they had to go change the structure as Centralization can
cause delay of work as the main orders come from control room and that doesn’t
allow quick decision also centralization causes problem with no special
attention to each employee as there is no personal supervision this can cause
workers to be very demotivated and hence slackness is shown in work.

Centralization and
decentralization both are a measure of the degree to which authority is devoted
within organization.



it started off from there and then later in 2007 it became world’s leading PC
Manufacturer. The company’s headquarters are in Palo, Alto California where it
was originally founded. HP has grown and evolved
significantly since its founding in 1939. (HP)Hewlett-Packard
was founded in a famous “one-garage” by William Hewlett and David Packard to
produce electronic testing equipment.


Categories: Strategy


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