2.2 (Organizational structure) Flashcards
organizational structure
An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization
Delegation
textbook Definiton:
Delegation refers to the passin on of control and authority to others, as businesses grow mangers need to relinquish some of their roles and responsibilities because they are not able to efficiently congorl all aspects of the organization
Refers to the division of labor and decision-making responsibility to an individual that reports to a leader or manager.
Span of control
Span of control refers to the number of people directly accountable to a manager . Hence the higher a person is in a hierarchy the wider their span of control tends to be.
Example CEO of a company is directly responsible to the board of directors and is also indirectly in charge of all employees in the organization
So
His direct span of control is narrow
While
his indirect span of control is very wide
Levels of hierarchy (2)
The hierarchy in a business refers to the organizational structure based on a ranking system . Those at the top of the hierarchy include the CEO, board of directors while at the bottom is the most unskilled employees
The chain of command:
Refers to the formal linked of which orders are passed down in an organization (example manager tells employee) (Directord tells manager)
Delayering:
is the process of removing one or more levels of hierarchy to flatten th reorganization structure. This reduce the number of layers and widen the span of control in the hierarchy
Bureaucracy (2)
Textbook defintion: Bureaucracy is the execution of tasks that are governed by official administrative and formal riles of an organization.
Bureautic organizations are chararctied by prescribed rules and politiec
Bureaucracy in business is a hierarchical organization or a company that operates by a set of pre-determined rules.
Centralization
In centralized structure, decision making is made up by a small number of people
Decentralized structures:
decision making isauthroity and responsibility is shared with others
Non official definition (but same)
In centralized organizations, strategic planning, goal setting, budgeting, and talent deployment are typically conducted by a single, senior leader or leadership team. In contrast, in decentralized organizations, formal decision-making power is distributed across multiple individuals or teams.
Organizaiton chart (2)
Is a diagrammatic (drawing) representation of a firms formal structure
Tall organizational charts have many levels in the organizations hierarchy
Flat organizational structure: thus each manger tends to have a wider span of control