2.2 Organizational Structure Flashcards
Delegation
Passing on of responsibility or authority to subordinates down the organizational hierarchy
Span of control
the number of subordinates reporting directly to a manager
Levels of hierarchy
a stage of the organizational structure which indicates the level of responsibility and authority one has
Chain of command
the line of authority and responsibility along which orders are passed from one person to another
Bureaucracy
an organizational system with a hierarchical structure and standardized procedures and rules
Centralization
keeping the important decision making powers within a small group of managers operating close to the head of the business
Decentralization
decision-making powers are passed down the organization to empower subordinates
De-layering
removal of one or more of the levels of hierarchy from an organizational structure
Organizational chart
a graphical illustration of relationships between an organization’s departments, functions, and people
Flat structure
an organizational structure with few levels of hierarchy, wide spans of control, and short chains of command
Tall structure
an organizational structure with many levels of hierarchy, narrow spans of control, and long chains of command
Hierarchical structure
an organizational structure which tends to be tall and bureaucratic, and structures people within the organization based on their rank. Each hierarchical level refers to a different rank with its associated degree of authority and responsibility
Organizational structure by function
Businesses structure their organization by different functioning departments, such as marketing, HR, finance, and operations
Organizational structure by product
Businesses structure their organization by the products they sell (broad product portfolio)
Organizational structure by region
Businesses structure their organization by the geographical regions they operate in (multinationals)
