2.2 Organisational Structure Flashcards
types of organization charts
Tall/vertical
Flat/horizontal
Flat/horizontal
- Less managers required so less cost
- Quicker communication and decision making
- More delegation and responsibility – high trust environment
- Empowered – closer to the top
Tall/vertical
- Each team is smaller so easier to control
- Better team morale as smaller teams
- More opportunities for promotion
- Clear hierarchy and structure
By Function:
Pro – Specialize in one function
Con – Managers only consider one function
By Product:
Pro – Specialize on one product
Con – Lack of coordination (e.g. research the same thing)
By Region:
Pros – Easier communication (e.g. similar culture), EEs have local knowledge
Cons – Job duplication, Lack of consistency across areas
Span of control
The number of subordinates (EEs) overseen by and directly accountable to a manager
Levels of Hierarchy
Refers to the organizational structure based on a ranking system. At the same level, staff have the same authority and status
(The number of levels within the hierachy)
Chain of command
Formal line of authority through which orders are passed down
Delegation
Passing on control and authority of a certain task to a person lower down in the organization
Bureaucracy
Organized system with standardized procedures and rules - e.g. rules/regulation, policies, standardized policies
Delayering:
Process of removing one or more levels in an organizational structure
Centralization:
When a business’ key decisions are made in Head Office - or at the centre of the business
Decentralisation
When a business’ key decisions are passed down to middle and junior-level managers within the business
Pros of Decentralisation Vs Centralisation
