Introduction
Management theorists have been debating the use of structure and decentralization of authority for many years. A typical example is from the works of Lyndall Urwick, and the concept of “Organizational Balance” as proposed by him and fellow management theorist, Peter Drucker. By understanding the theory of Organizational Balance, managers and organizations can find a better balance between structure and decentralization.
Background Information on Lyndall Urwick and Peter Drucker
Lyndall Urwick (1891-1983) was one of the earliest management theorists, who wrote about the relationships between structure and decentralization of authority. He argued that an organization needed to find the ideal balance of structure and decentralization in order to achieve the best results. In his book, The Art of Administration, and his other works, he outlined his theory of “Organizational Balance” and argued that a balance between the two was needed in order to achieve the best results.
Peter Drucker (1909-2005) was another influential management philosopher and theorist, who contributed significantly to the field. He was influential in introducing concepts such as the “corporate mission” and the concept of “knowledge workers”. In his book, Management: Tasks, Responsibilities, Practices, and in his other works, he argued that an organization should strive to achieve a balance between centralization and decentralization in order to be successful.
Urwick and Drucker’s Theory of Organizational Balance
Lyndall Urwick and Peter Drucker’s theory of Organizational Balance has been widely accepted in the management field. The concept states that an organization should find a balance between structure and decentralization of authority in order to be most effective. While structure aids in delivering goods and services efficiently, decentralization is important for mobilizing the group to action and innovation.
Urwick and Drucker argued that it was important for organizations to find the perfect balance between the two elements, in order to be successful. The theory states that an organization should have sufficient structure to enable efficient production and delivery of goods and services. At the same time, the organization should have enough decentralization of authority to enable individuals to make decisions and take initiative.
The theory emphasizes the importance of having a balance between these two elements in order to achieve the most effective results. It is argued that without the right balance, an organization cannot be successful. It was influential in the development of organizational theory and has been embraced by many management theorists and practitioners.
Conclusion
The theory of Organizational Balance proposed by Lyndall Urwick and Peter Drucker remains a highly influential concept in the field of management. The concept stresses the need for organizations to find the right balance between structure and decentralization of authority in order to be effective. By understanding and applying the concept of Organizational Balance, managers and organizations can ensure that they are able to achieve the best outcomes from their actions and decisions.
