2.2 Organisational Structure Flashcards
What is an “organisational chart”?
“An organizational chart is a diagrammatic representation of a firm’s formal structure. Formal groups are set up to carry out specific functions, such as a team of finance specialists or a department of marketers. “
What is the definition of “span of control”?
Span of control describes the number of subordinates that a manager or supervisor can directly control. This number varies with the type of work: complex, variable work reduces it, whereas routine, fixed work increases it.
–> can be either NARROW or WIDE
What span of control is this?
Narrow span of control
What is the definition of “hierarchy”?
A hierarchy is a pyramid-like structure where each level (except the top and the bottom levels) has one higher and one lower level. The higher a level is in the hierarchy the greater the authority or importance.
What is the definition of “chain of command”?
The chain of command in an organisation is the line of authority and responsibility along which orders are passed from one person to another.
–> can be either SHORT or LONG
What is “bureaucracy”?
Bureaucracy is a system of administration with clear hierarchical structure in which people are expected to follow precisely defined rules and procedures. It is used to describe the formal rules in an organisation, the communication and impersonal relationships.
What is the difference between centrelisation and decentralisation?
Centralised organisational structure often relies on one individual or small group of top managers to make decisions about the company’s direction. Decentralised organisational structure relies on a team environment at different levels to achieve the company’s goals.
Which of these diagrams is centralised, and which is decentralised?
A = Centralised B = Decentralised
What is an advantage of a centralised organisation?
Efficiency in making business decisions under pressure as those are made centrally by the top management.
What is an advantage of a decentralised organisation?
Manages to utilise the employees’ expertise and knowledge at various level.
What is the definition of an “organisational chart”?
An organizational chart is a diagrammatic representation of a firm’s formal structure.
What is this type of organisational structure?
A flat or horizontal organisational structure.
This is typical for small businesses which often have few levels of hierarchy.
There is a wide span of control, and short chains of command. Often employees in this structure are delegated more authority.
What is this type of organisational structure?
A tall organisational structure.
This is a structure with multiple levels of management and is typical for large and complex organisations.
There are many levels of authority between the top manager and the lowest-level employees. There is a long chain of command as communication usually flows from top to bottom. There is little to no delegation of authority and a narrow span of control.
What is the definition of a “project based (matrix) organisation”?
Project-based organisational structure is a temporary structure which is created to facilitate the execution of a specific project. It can exist within all types of organisations.
What is the definition of a “shamrock organisation”?
Type of flexible organizational structure, coined by Charles Handy, advocating that organizations must adapt to changes in the business environment by having a core workforce, contingent workforce and outsourced vendors.
