two pros and two cons of centralizing the power structure into the hands of a relative few individuals using Richard L Daft’s discussions
- Discuss two pros and two cons of centralizing the power structure into the hands of a relative few individuals using Richard L Daft’s discussions on either (Resource Dependence or Organizational Ecosystems)., and what you know about structure. Give one conclusion, recommendation, or lesson from your discussion.
Structure of an organization involves the leadership composition at different levels. It determines the responsibilities of employees and outlines objectives that are supposed to be realized at the close of the fiscal period. Most organizations have a centralized form of leadership which has its benefits and drawbacks.
Benefits of Centralized Power.
A well-outlined hierarchy of command; In view of company relationship built upon resource dependence, top managers have a lot of influence when it comes to making a crucial decision. When a accompany wants to remain afloat and minimize the number of resources supplied from other companies, the manager will come up with a decision which enables the organization to continue meeting its established objectives as they decline the level of dependence (Daft, 1992).
Improved focus on objectives; upon centralizing organizational power, the leader is in a position to steer the company in the right direction. Increased emphasis will push a company to get into healthy relationships while outsourcing primary resources they require for production purposes. Therefore, the power vested on the hands of an individual is vital in making appropriate choices.
Drawbacks of Centralized Power.
Centralized power is associated with bureaucracy; most organizations functioning in a specific industry usually have an association which impose guidelines on their operations. Consequently, individual organizations will establish regulations which are relating to the instructions of the association (Daft, 1992).
Consolidated control; top managers in most organizations often impose pressure on the employees when they are the sole decision-makers. They inculcate regulations which pressurize the employees. On the flip side, leading companies in the industry can also impose pressure on smaller companies through power obtained from more substantial control of the market share (Daft, 1992). The pressure will translate to the management structure of the smaller companies.
Generally, most organizations in various industries employ a centralized power structure. However, it is not perceived as the best form of leadership since most employees feel that it is closely related to dictatorship. It confines the freedom of most employees and limits their chance of improving in their areas of specification as they will be working under duress.
- “Who are the rich in terms of U.S. population”. This is a political question and answering this question should include any U.S. political candidate. For example, the rich are often described as the 1% and in the united states to be in the this bracket an individual must earn about $478,000 a year, about 19 million Americans fall under this category. Elizabeth warren wants to overhaul the tax system with a wealth tax that would take $200 billion a year from the rich by imposing an annual tax on accumulated wealth rather than income.
The wealthy American population comprises of the 1% of the country’s population. To be enlisted among this group, an individual must have at least $10,374,030.10 after his/her liabilities are deducted from the total cost of assets held (Kelly, 2019). In this list is the Illinois governor, J.B. (Jay Robert) Pritzker who is proclaimed as the wealthiest politician with wealth amounting to $3.4 billion and ranked at position 250 in the 2019 Forbes 400 (Sfondeles, 2019).
The Illinois governor and his wife, M.K. (Mary Kathryn) Pritzker are estimated to have paid total taxes of $ 2,049,182 and $ 215,885 to the federal and state governments respectively. Further, the Pritzker’s made donations as part of a charity drive during their campaign that was valued at $ 464,000 (Sfondeles, 2019).
Additionally, the Pritzker’s financial information from the returns of the fiscal year2017 indicates a taxable income estimated at $ 34,439,798. During the fiscal year, they paid tax returns to the federal and state governments which were valued at $ 14.8 million and $ 811,816 respectively. The financial history of the Pritzker can also be traced to 2016 when they had a gross income of $ 14.95million after the tax deductions (Sfondeles, 2019). Pritzker is a successor of the Hyatt hotel assets. The inheritance forms the framework for his financial position and stake in 1% of the rich in America.
References
Daft, Richard. (1992). Essential Organization Theory and Design. https://www.researchgate.net/publication/31695904_Essential_Organization_Theory_and_Design
Kelly, J. (2019, October 22). The Number Of Millionaires Has Boomed-Here’s Where Your Net Worth Ranks Compared To Others. https://www.forbes.com/sites/jackkelly/2019/10/22/the-number-of-millionaires-has-boomedheres-where-your-net-worth-ranks-compared-to-others/#1cc56a88576f
Sfondeles, T. (2019, October 15). Billionaire Gov. Pritzker made $5.5 million in taxable income last year. https://chicago.suntimes.com/2019/10/15/20916175/jb-pritzker-tax-returns-2018-income-1040