Centralized organizational structures depend on one key individual to make decisions for the company and provide direction. Decentralized organizational structures have several key individuals who are all equally important in providing direction and vision to the organization (Jones, 2010).
Vertical organizational structure is an organizational paradigm in which the president sits at the top of the company. Each division in the organization has a series of supervisors and middle managers responsible for various departments in the organization. A horizontal organizational structure avoids middle managers and employees make their own day-to-day decisions.
Top down organizational strategy is one in which an organization places a large amount of control to the owner of the business and upper management personnel. Bottom up management is one in which the organization taps into the creativity and expertise of the whole organization. Advantages of organizational design include, clarity in decisions making, growth of the organization, and adaptability to changing business trends (Jones, 2010).
Jones. (2010). Organizational theory, design, and change. Upper Saddle River: Pearson.