2.2 Organizational Structure

Question 1

Accountability

Answer 1

Describes the extent a person is held responsible for the success or failure a task of job

Question 2

Bureaucracy

Answer 2

The official administrative and formal rules of an organization that govern business activity

Question 3

Centralization

Answer 3

Occurs when the majority of decision making is done by a very small number of people

Question 4

Chain of command

Answer 4

Refers to the formal line of authority shown in an organization chart

Question 5

Delayering

Answer 5

Process of removing levels in the hierarchy to flatten the organizational structure (widening the span of control)

Question 5

A flat/Horizontal organizational structure

Answer 5

Means that there are only a few layers in the formal hierarchy
- managers have a relatively wide span of control

Question 5

Decentralization

Answer 5

Occurs when decision making authority and responsibility are shared with others in the organization

Question 6

Delegation

Answer 6

The empowerment of a person lower down in the organizational structure by passing on control and decision making authority to complete a certain task

Question 7

Hierarchy

Answer 7

Refers to the organizational structure based on a ranking system.
- The higher the rank, the higher the authority

Question 8

Levels of the hierarchy

Answer 8

Refers to the number of layers of formal authority in an organization

Question 9

Line manager

Answer 9

Refers to the personal directly above an employee in the organizational structure

Question 10

Managers

Answer 10

The people responsible for the day-to-day running of the business or a department within the organization

Question 11

Matrix structure

Answer 11

Refers to a flexible try[e of organizational structure of representatives from different departments
- Temporality working together on a job

Question 12

Organization by function

Answer 12

Refers to structuring a workforce according to business functions
- Specialized roles or tasks such as marketing

Question 13

Organization by product

Answer 13

Refers to structuring a workforce according to the goods or services produced or sold

Question 14

Organization by region

Answer 14

Refers to structuring a workforce according to different geographical areas

Question 14

Organization chart

Answer 14

A diagrammatic representation of a firm’s formal structure of human resources

Question 15

Organizational structure

Answer 15

Refers to the formal interrelationships and hierarchical arrangements of human resources within a business

Question 16

Outsourced workers

Answer 16

The individuals or organizations hired on a contract basis to carry out specific but non core roles

Question 17

Peripheral workers

Answer 17

Are the contingent workers consisting of part time and temporary staff hired by the organization to provide greater flexibility

Question 18

Project based organization

Answer 18

Arranges human resources around particular projects, eahc led by a project manager

Question 19

Professional core

Answer 19

The core workers consisting of full time specialists/professionals who are vital for the organization’s operation and survival

Question 20

Responsibility

Answer 20

Refers to who is in charge of whom and in what role or capacity, can be seen in an organizational chart

Question 21

Shamrock Organization

Answer 21

Refers to Charles Handy’s model that organizations are increasingly made up of core stuff who are supported by peripheral workers and outsourced workers

Question 21

Span of control

Answer 21

Refers to the number of subordinates overseen by a manager
- The number of people who are directly accountable to the manager

Question 21

Tall/Vertical organizational structure

Answer 21

Means that there are many layers in the hierarchy and therefore managers have a narrow span of control