Organization Design Essay Example | Topics and Well Written Essays - 250 words

Organization Design - Essay Example For example, in the case of a pharmaceutical company, power is retained by the R&D department because it is the very department that generates resources. Which subunits qualify for receiving the information is dictated by the organizational structure. When a certain subunit in the organizational structure has more control over information compared to other subunits, it is capable of influencing the opinions and accordingly influence the decision making process. Subunits that are central to the organization have more power than others. Manufacturing is central in a low-cost organizational culture. Organizations sometimes need to assign more power to a certain subunit in order to ensure that it makes optimal use of the resources. The balance of power between the different subunits is not always suitable for effective utilization of the resources (Jones, 2010, p. 423). Apart from this, there can be relational ties between the executive managers and the head of one of the subunits, which can become a reason for more delegation of power to that subunit compared to