Organizational Design Fundamentals and Emotional Intelligence in Contemporary Organizations

Running head: INTRODUCTION TO MANAGEMENT
INTRODUCTION TO MANAGEMENT
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INTRODUCTION TO MANAGEMENT1
Answer 1
Centralization and decentralization are considered as organizational design
fundamentals determining the degree types of decision-making process is completed at one
essential level or at numerous levels by employees. For instance, all critical budget results
tend to filter to the top management level of the organization in centralized approach.
According to Santos, Pache and Birkholz (2015), customer service decisions show a tendency
to be decentralized providing the ones interacting with client directions on the way to deal
with issues, but the authority to make specific decisions. However, contrary to
centralized corporations, decentralized organizations show less concentrated power. In a
decentralized organization, inferior levels in the organizational hierarchy can engage
in decision-making procedures (Gruber et al. 2015). For instance, decentralized organization
can be considered as fast-food franchise chain, where each franchised restaurant unit in the
chain is accountable for individualistic operation.
Elements related to workplace environment pose significant impact to the employees’
performance towards the negative or constructive outcomes. According to Herzberg theory,
factors of work environment which tend to satiate employees vary from the factors which
cause dissatisfaction to them. Herzberg theory indicates that cultivating the environment
where job is performed stimulates employees to offer improved employment outcomes with
utmost efficiency. The shift to team-based organizational structure has emerged from
demands to conduct rapid decisions in order to lessen inefficiencies and further to continually
enhance work progressions. For example, Woolworths, Australian super retail giant has
realized utmost value and importance of its team and clientele. Reports of author reveal that
Woolworths aim to attain structured workplace environment through training and educational
developments of wide range employee base (Mayer, Caruso and Salovey 2016). Authors have
noted that training is an imperative element in producing the human capital as it offers

INTRODUCTION TO MANAGEMENT2
employees with the services, abilities and knowledge essential to perform their tasks.
Furthermore, the organization has established inclusive communication base with its
workforce in order to receive constant feedback.
Answer 2
Emotional Intelligence (EI) establishes the stage at which understanding and emotion
meet. Petrides et al. (2016) are of the opinion that EI facilitates employees for resilience,
enthusiasm, empathy, cognitive, stress management and the capability to read as well as
direct range of social situations and conflicts. EI serves decisive role in contemporary
organization and if yielded efficiently tends to offer avenues to distinguish more achieved
and contented life. There can be identified five components of EI related to self-awareness,
motivation, social skills, empathy in addition to self-regulation. EI is developing highly
imperative to humans’ achievements in the progressing digital future of work.
Considering Goleman’s model, employees possessing higher level of EI tend to have
the capacity to self-regulate. Furthermore, increased levels of motivation and stimulation tend
to lessen the propensity to procrastinate thus advancing to elevated self-buoyancy and
facilitates them to focus on successfully acquiring long-term goals (Focht and Ponton 2015).
While, leaders with elevated levels of EI assist teams for efficient collaboration and
identification of particular determinants which stimulate individual employees, teams can
further develop an emotional intelligence of their own. For example, Aldi Australia has
established robust team with utmost trust and deference for providing as well as receiving
feedback. Aldi efficiently accentuates on fostering robust workplace culture by EI, which
makes it less complex in establishing constructing affirmative environment from corporate,
traders, stores and workforce (MacCann et al. 2014).