Employees will than become empowered to make decisions on their own and become increasingly motivated to add input and help their employer grow. The biggest advantage to decentralizing authority is the ease of a company to globalize and grow to incorporate a variety of different markets. It's for this reason newer corporations in the world today have adopted a more centralized form of organizational structure, to meet the demands over many areas of the world and different consumer tastes. The biggest disadvantage would be the amount of control upper-level managers must relinquish to lower-level managers, entrusting them to know the customer and deliver satisfactory results. The types of organizations best suited for decentralized authority would be global corporations, franchises and hospitals.
The definition of informal organization refers to a system within an organization that develops as employees meet and form relationships. This refers to "the grapevine" or the "unofficial" flow of information among employees. According to Kristin Clarke in "Inside the Informal Organization", informal organization is emotional; it's what goes on in the hallways and behind closed doors including elements such as workers personal values, informal networks they may develop, communities of common interest, and peer-to-peer interactions. As opposed to formal organization, which encompasses an employees scope of authority and job description, it cannot be controlled by company guidelines. This is important for company morale and establishing individuals in a company that are often pursued for advice or simply comprehend problems in ways management cant. This can be situations such as dealing with personal issues around their work time or even seeking an outside perspective. Managers cannot not necessarily control this flow of information but they can definitely manage it by paying attention to the major players and influencers within a department, and using their information to boost morale and use that wealth of information.