Republic of the Philippines

Laguna State Polytechnic University – San Pablo City Campus

Brgy. Del Remedio, San Pablo City

GRADUATE STUDIES AND APPLIED RESEARCH

Course Code : EM207
Course Title :
Topic : Role and Functions of Effective Educational Leaders
 Role of Centralization
 Role of Committees
 Role of Informal Organizations
Reporter : DENWARD R. PACIA
School : San Pablo City Senior High School – Stand Alone
Email Address: denwardrp@gmail.com
Professor : Ed. D

ROLE OF CENTRALIZATION

What is Centralization?

Centralization refers to the process in which activities involving planning and decision-making

within an organization are concentrated to a specific leader or location. In a centralized organization,

the decision-making powers are retained in the head office, and all other offices receive commands from

the main office. The executives and specialists who make critical decisions are based in the head office.

Similarly, in a centralized government structure, the decision-making authority is concentrated

at the top, and all other lower levels follow the directions coming from the top of the organization

structure.

Advantages of Centralization

An effective centralization offers the following advantages:

1. A clear chain of command

A centralized organization benefits from a clear chain of command because every person within

the organization knows who to report to. Junior employees also know who to approach whenever they

have concerns about the organization. On the other hand, senior executives follow a clear plan of

delegating authority to employees who excel in specific functions. The executives also gain the

confidence that when they delegate responsibilities to mid-level managers and other employees, there
will be no overlap. A clear chain of command is beneficial when the organization needs to execute

decisions quickly and in a unified manner.

2. Focused vision

When an organization follows a centralized management structure, it can focus on the fulfillment

of its vision with ease. There are clear lines of communication and the senior executive can communicate

the organization’s vision to employees and guide them towards the achievement of the vision. In the

absence of a centralized management, there will be inconsistencies in relaying the message to

employees because there are no clear lines of authority. Directing the organization’s vision from the top

allows for a smooth implementation of its visions and strategies. The organization’s stakeholders such

as customers, suppliers, and communities also receive a uniform message.

3. Reduced costs

A centralized organization adheres to standard procedures and methods that guide the

organization, which help reduce office and administrative costs. The main decision-makers are housed

at the company’s head office or headquarters, and therefore, there is no need for deploying more

departments and equipment to other branches. Also, the organization does not need to incur extra costs

to hire specialists for its branches since critical decisions are made at the head office and then

communicated to the branches. The clear chain of command reduces duplication of responsibilities that

may result in additional costs to the organization.

4. Quick implementation of decisions

In a centralized organization, decisions are made by a small group of people and then

communicated to the lower-level managers. The involvement of only a few people makes the decision-

making process more efficient since they can discuss the details of each decision in one meeting. The

decisions are then communicated to the lower levels of the organization for implementation. However,

if lower-level managers are involved in the decision-making process, the process will take longer and

conflicts will arise. It will make the implementation process lengthy and complicated because some

managers may object to the decisions if their input is ignored.

5. Improved quality of work

The standardized procedures and better supervision in a centralized organization result in

improved quality of work. There are supervisors in each department who ensure that the outputs are

uniform and of high quality. The use of advanced equipment reduces potential wastage from manual

work and also helps guarantee high-quality work. Standardization of work also reduces the replication

of tasks that may result in high labor costs.

Disadvantages of Centralization

The following are the disadvantages of centralization:

1. Bureaucratic leadership

Centralized management resembles a dictatorial form of leadership where employees are only

expected to deliver results according to what the top executives assigned them. Employees are unable

to contribute to the decision-making process of the organization, and they are merely implementers of

decisions made at the higher level. Even when the employees face difficulties in implementing some of

the decisions, the executives will not understand because they are only decision-makers and not

implementers of the decisions. The result of such actions is a decline in performance because the

employees lack the motivation to implement decisions taken by top-level managers without the input of

lower-level employees.

2. Remote control

The organization’s executives are under tremendous pressure to formulate decisions for the

organization, and they lack control over the implementation process. The failure of executives to

decentralize the decision-making process adds a lot of work to their desk. The executives suffer from a

lack of time to supervise the implementation of the decisions. It leads to reluctance on the part of

employees. Therefore, the executives may end up making too many decisions that are either poorly

implemented or ignored by the employees.

3. Delays in work

Centralization results in delays in work as records are sent to and from the head office.

Employees rely on the information communicated to them from the top, and there will be a loss in man-

hours if there are delays in relaying the records. It means that the employees will be less productive if

they need to wait long periods to get guidance on their next projects.

4. Lack of employee loyalty

Employees become loyal to an organization when they are allowed personal initiatives in the

work they do. They can introduce their creativity and suggest ways of performing certain tasks. However,

in centralization, there is no initiative in work because employees perform tasks conceptualized by top

executives. It limits their creativity and loyalty to the organization due to the rigidity of the work.

Summary

Centralization refers to a setup in which the decision-making powers are concentrated in a few leaders

at the top of the organizational structure. Decisions are made at the top and communicated to lower-

level managers for implementation.

Role of Committees

A committee (or "commission") is a body of one or more persons that is subordinate to a

deliberative assembly. Usually, the assembly sends matters into a committee as a way to explore

them more fully than would be possible if the assembly itself were considering them. Committees may

have different functions and their type of work differ depending on the type of the organization and its

needs.

Purpose

A deliberative assembly may form a committee (or "commission") consisting of one or more

persons to assist with the work of the assembly. For larger organizations, much work is done in

committees. Committees can be a way to formally draw together people of relevant expertise from
different parts of an organization who otherwise would not have a good way to share information and

coordinate actions. They may have the advantage of widening viewpoints and sharing out

responsibilities. They can also be appointed with experts to recommend actions in matters that require

specialized knowledge or technical judgment.

Functions

Committees can serve several different functions:

Governance

In organizations considered too large for all the members to participate in decisions affecting

the organization as a whole, a smaller body, such as a board of directors, is given the power

to make decisions, spend money, or take actions. A governance committee is formed as a

separate committee to review the performance of the board and board policy as well as

nominate candidates for the board.[3]

Coordination and administration

A large body may have smaller committees with more specialized functions. Examples are an

audit committee, an elections committee, a finance committee, a fundraising committee, and a

program committee. Large conventions or academic conferences are usually organized by a

coordinating committee drawn from the membership of the organization.

Research and recommendations

Committees may be formed to do research and make recommendations on a potential or

planned project or change. For example, an organization considering a major capital

investment might create a temporary working committee of several people to review options

and make recommendations to upper management or the board of directors.

Discipline

A committee on discipline may be used to handle disciplinary procedures on members of the

organization.
As a tactic for indecision

As a means of public relations by sending sensitive, inconvenient, or irrelevant matters to

committees, organizations may bypass, stall, or disacknowledge matters without declaring a

formal policy of inaction or indifference. However, this could be considered a dilatory tactic.[5]

Power and authority

Generally, committees are required to report to their parent body. Committees do not usually

have the power to act independently unless the body that created it gives it such power.

Role of Informal Organization

The concept of informal organization draws attention to the patterns of activity and interpersonal

relationships that develop inside an organization and are not reflected in an organizational chart or

personnel manual. It sheds light on what actually happens when an organization’s members perform (or

do not perform) their jobs. The informal organization can work in conjunction with, parallel to, or against

the formal organization.

The informal organization can be most directly contrasted with the rational-legal model of

bureaucracy theorized by the German sociologist Max Weber. Weber’s model is intentionally

impersonal. There, responsibilities and functions reside in an office and are designed such that anyone

with the necessary skills can occupy the office, learn how to perform its function, and do so with little

variation in outputs. In contrast, the informal organization is intensely personal. Individuals may occupy

roles and offices, but they bring to those offices their own interests, values, and assumptions. Their

organizational behavior is as much a function of their personalities as of their formal duties. Workers

develop friendships (and enemies), trusted sources of information, and preferences for how to

accomplish assigned tasks that may or may not support the formal organization.

The informal organization was first noted in experiments conducted in the early 1930s in which

researchers noted the presence of a social organization in addition to the technical one that governed

worker behavior. The social organization was structured and orderly, just as the formal organization
was, and in this case worked to counter organizational efforts to structure the work process. Some

experts argue that an executive’s work is chiefly concerned with shaping the social organization so that

it works in conjunction with the technical organization. Indeed, the modern emphasis on organizational

culture, mission statements, and efforts to empower workers can be seen as attempts by managers to

structure the informal organization so that it reinforces rather than counteracts the technical core of the

organization.

The informal organization fell out of favor in the 1960s. Its legacy, however, can be seen in later

work on institutional theory and network analysis. Institutional theory views the organizational world as

a construct of the ideas and conceptions of its members. Network analysis focuses on the interaction of

culture, human agency, and social structure.

References:

https://www.britannica.com/topic/informal-organization

https://smallbusiness.chron.com/advantages-centralized-organizational-structure-21410.html

https://corporatefinanceinstitute.com/resources/knowledge/strategy/centralization/

https://en.wikipedia.org/wiki/Committee