2.2 Organizational structure Flashcards
Organizational structure
Internal (formal) framework of a business, shows the way in which management is organized (How authority is passed through an organization)
Level of hierarchy
Stage of organizational structure at which personnel have equal status or authority
Tall vertical structure
Many levels of hierarchy (narrow spans of control)
Flat horizontal structure
One with few levels of hierarchy (wide spans of control)
Span of control
of subordinates reporting directly to a manager
Chain of command
- Is Delegation
* Route through which authority is passed down in an organization
Accountability
Obligation of an individual for their activities to disclose results in a transparent way
Delayering
Removal of 1+ levels of hierarchy of an organizational structure.
• To reduce costs
• Improve communication
• Dismissal
Bureaucracy
Organizational system with standardized procedures and rules
Centralization
- Is autocratic
* Decision-making power lies within the head office or center of the organization
Decentralization
- Is democratic
- Decision-making power passes down the organization.
- Empowers subordinates and managers
Hierarchical structure
Structure where power and responsibility are specified and allocated to individuals according to their position in the hierarchy
Matrix structure
- Organizational structure that creates project teams that cut across traditional functional departments
- Creates motivation within employees
- Could be a lack of recognition because of teamwork
- Is democratic
- There is efficient exchange of data
Effective communication
Exchange of information with feedback
Feedback
Response to a message by the receiver