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Centralization and decentralization: The neverending story of separation and betrayal

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  • Cummings, Stephen

Abstract

This paper employs a "deconstructive" approach to examine the relationship between forces for organizational centralization and decentralization. Three common assumptions: that the "information age" of the 1980s and early 1990s was enabling a permanent emancipatory movement away from centralized structures; that there exists for each organization an achievable balance between the two poles; and, that trends regarding centralization and its opposite are driven by "external" environmental forces, such as managerial styles and technological developments, are questioned. This paper highlights an aspect which has not surfaced in the organization theory literature on centralization and decentralization -- that the pendulous movement between the two is driven, as much as anything else, by an inherent "internal" dynamic between and within the nature of the written terms, and within the nature of human beings.

Suggested Citation

  • Cummings, Stephen, 1995. "Centralization and decentralization: The neverending story of separation and betrayal," Scandinavian Journal of Management, Elsevier, vol. 11(2), pages 103-117, June.
    • Handle: RePEc:eee:scaman:v:11:y:1995:i:2:p:103-117
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    Citations

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    Cited by:

    1. Scott L. Mitchell & Mark D. Packard & Brent B. Clark, 2022. "Decentralizing corporate governance? A praxeological inquiry," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(4), pages 413-429, December.
    2. Jack A. Nickerson & Todd R. Zenger, 2002. "Being Efficiently Fickle: A Dynamic Theory of Organizational Choice," Organization Science, INFORMS, vol. 13(5), pages 547-566, October.
    3. Nicholas Argyres & Todd R. Zenger, 2013. "Dynamics of organizational structure," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 12, Edward Elgar Publishing.
    4. Tobias Kretschmer & Christoph Dehne, 2020. "Organisationsstruktur und Führungsstil nach Akquisitionen – eine empirische Untersuchung [Organizational Structure and Leadership Style after Acquisitions – an Empirical Study]," Schmalenbach Journal of Business Research, Springer, vol. 72(4), pages 479-512, December.
    5. Cäker, Mikael & Siverbo, Sven, 2014. "Strategic alignment in decentralized organizations – The case of Svenska Handelsbanken," Scandinavian Journal of Management, Elsevier, vol. 30(2), pages 149-162.
    6. Jisoo Kang & Seungyeon Lee & Seungho Choi, 2023. "Asymmetric Vacillation in the FMCG Industry: A Case Comparison of Procter & Gamble and Unilever," Administrative Sciences, MDPI, vol. 13(8), pages 1-18, August.
    7. Marlo Raveendran, 2020. "Seeds of change: How current structure shapes the type and timing of reorganizations," Strategic Management Journal, Wiley Blackwell, vol. 41(1), pages 27-54, January.

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