2.2

Question 1

what is an organisational chart?

Answer 1

Organizational Charts are diagrams that outline formal roles, responsibilities and reporting lines of an organizations. In other words, is a graphic representation of the structure of an organization showing the relationships of the positions or jobs within it.
They are the most common way of presenting the structure of an organization.

Question 2

what are leves of higherachy?

Answer 2

Levels of Hierarchy – how many levels of responsibility exist in the organization, Each level indicates Line Mangers and Staff Managers (i.e., PA is not included)

Question 3

what is the chain of command?

Answer 3

Chain of Command – Formal route by which the decision must travel through the organization (PA is out of this command, but of course will be the one communicating the decision)

Question 4

what is the span of controll?

Answer 4

Span of Control – shows how many subordinates are directly under the authority of the Manager and what (or whom) managers are responsible for (All the Executives in the example chart).

Question 5

what is delegation (this is NIT used in the organizational chart)?

Answer 5

Delegation – when the manager gives authority for a decision but NOT responsibility for the outcome of the decision. This normally happens when the Span of Control is large.

Question 6

what is centralisation (this is NIT used in the organizational chart)?

Answer 6

Centralization – When a decision is made and kept in a close group of managers. This occurs when organizations have a small Span of Control but many levels of Hierarchy. Therefore, key managers make all the decisions not involving subordinates (i.e., Autocratic leaders).

Question 7

what is decentralisation (this is NIT used in the organizational chart)?

Answer 7

Decentralization – opposite of Centralization. Core decisions are maintained by the senior managements, but other decision making is delegated to middle managers. This happens in organizations with fewer levels of hierarchy and large levels of Span of Control (i.e., democratic leader)

Question 8

what is bureaucracy (this is NIT used in the organizational chart)?

Answer 8

Bureaucracy – Refers to systems and processes of maintaining uniformity or authority within an organization.It happens when an organization has many rules has procedures. Initiative, flexible thinking and delegation are not expected . Lots of paperwork is required for any process.

Question 9

what is de-layering (this is NIT used in the organizational chart)?

Answer 9

De-layering – reducing levels of hierarchy by removing layers of management. Intends to reduce bureaucracy and give more decision power to middle managers . As the business does not need to employ many managers, cost are reduced.

Question 10

what is a matrix structure (this is NIT used in the organizational chart)?

Answer 10

Matrix structure – it’s a flexible organizational arrangement designed to address the specific requirements of a business and adapt to its needs. In a matrix structure, individuals are assigned to multiple roles, resulting in multiple reporting lines. The primary purpose of this organizational approach is to promote collaboration across different functions or departments. Employees may have responsibilities under various managers and participate in multiple teams simultaneously.

Question 11

what are the types of organisational structures you need to be able to talk about?

Answer 11

Tall or vertical organizational structure
Flat or horizontal organizational structure
Organizational structure by hierarchy
Organizational structure by function
Organizational structure by product
Organizational structure by region

Question 12

expand on tall or vertical organisational structure?

Answer 12

Tall or vertical organizational structure – the most common structure in well stablished businesses. It has the following characteristics:
Many levels of Hierarchy
Narrow spans of control
Centralized decision-making
Long chains of command
Limited delegation
Autocratic leadership

Question 13

expand on flat or horizontal organisational structure?

Answer 13

Flat or horizontal organizational structure – a modification of the traditional structure with the following characteristics:
Few levels of Hierarchy
Wider spans of control
Decentralized decision-making
Shorter chains of command
Increased delegation
Democratic leadership

Question 14

exapnd on organisation sructure by heriarchy?

Answer 14

Organizational Structure by Hierarchy – clearly shows the levels of hierarchy in the business

Question 15

exapnd on organisation sructure by function?

Answer 15

shows employees roles by department and seniority.

Question 16

exapnd on organisation sructure by product ?

Answer 16

shows the structure based on what the business produces. For example, a book publisher

Question 17

exapnd on organisation sructure by region ?

Answer 17

shows the structure according to where the businesses operations are.

Question 18

There is no “correct” organizational structure. It depends on various factors and could change as organization are growing. Can you give some examples?

Answer 18

A start-up company might choose a Flat structure first and as it grows more layers and levels of hierarchy will be added. Hence the organizational structure will change to a taller one.
A supermarket chain might choose to have a Regional structure
A manufacturing company might choose to have an organizational structure by product or by function
Moreover, external changes that are out of the companies’ control might also affect the organizational structure (think what happened during COVID!). A good tool to use in this case is STEEPLE.

Question 19

Some organizations adapt some of their structures to changes that might happen in the organization. This could be due to external or internal factor. what are the two examples of this?

Answer 19

Project-based organization (PBO)
Shamrock organizations

Question 20

what is a project based organisation?

Answer 20

PBO (project based organisations)

Temporarily set up to execute a business project.

Project staff could be full time or part time, and report to the ‘Project manager’.

Can exist in all forms of business.

Closest to a matrix shape.

Question 21

what are the diffrence between a matrix sturcture and proect based organisation?

Answer 21

PBO-
A formal structure designates a project manager (PM) who assumes full responsibility, and authority is centralized.

All team members are held individually accountable for their actions and results.

Teams may report to a single project manager at any given time, depending on the project’s nature and complexity.

More effective for highly complex and strategic projects or business ventures

MS-
There is no formal hierarchy, and someone might be chosen by the group to manage discussions and progress.

Allows members to volunteer from different areas of the organization.

Employees report to multiple line managers

Suitable for less complex assignments

Question 22

what is a shamrock orgnaisation?

Answer 22

Shamrock organizations – Developed by Charles Handy. Theshamrockleaf shape is a symbolic representation of anorganizationwith three types of workforce: Core workforce (essential employees for the business), Freelance contractors (subcontracted employees) and Flex workers (temporary, part-time employees)

Question 23

exand furthere on shamrock organisation?

Answer 23

With Handy’s Shamrock approach organizations can improve competitiveness by reducing unnecessary expenses and adapting quickly to market changes. Allowing companies to attain greater flexibility and adjust the number of employees needed in line with the organization’s changing needs.
For example, by employing flex and freelance workers, the organization can avoid the challenges and costs of staff layoffs during adverse market conditions.
this approach reduces costs as fringe benefits are exclusively provided to full-time employees. However, they may create uncertainties and anxiety amongst the worker force.