The small amount of people working for his company are all responsible for reporting to the manager, so the company is considered to have a small span of control. Centralization, the degree that decision making is concentrated, is also small because of the size of the company. The formal authority of the company is Henry. This also applies for the decentralization. The formalization of the company is low. Jobs are standardized based on what people can do and what they have done in the past to prove their skills in such job paths. All this means is that there is more freedom when working at Henry’s plumbing and Pumps.
The organizational design of the company is the simple structure. Henry’s company is run by a low degree of departmentalization, authority centered around one individual, and little formalization. This structure is very common in small businesses such as