2.2 Organizational Structure

Question 1

Organizational Structure

Answer 1

relates to the system of relationships between individuals in an organization, which determines
* communication
* work
* responsibility
* decision-making

Question 2

Levels of hierarchy

Answer 2

number of levels within an organization, with employees at the same level having the same authority responsibilities
Tall - many levels
Flat - Few levels

Question 3

Span of control

Answer 3

number of employees that a manager directly overseas
Tall - low span of control
Flat - high span of control

Question 4

Chain of command

Answer 4

the route that information and responsibility moves up and down the structure
Tall - long chain of command
Flat - short chain of command

Question 5

Features of a tall/vertical structure

Answer 5

• each team is smaller so easier to control
• better team morale as smaller teams
• more opportunities for promotion
• clear hierarcy and structure

Question 6

Features of a flat/horizontal structure

Answer 6

• less managers required so less cost
• quicker communication and decision making
• more delegation and responsibility - high trust environment
• empowered - closer to the top

Question 7

Delegation

Answer 7

giving authority and responsibility of a task to another employee, usually to someone lower

Question 8

bureaucracy

Answer 8

an admin system which defines how things are run in the org.
e.g. paperwork and rules

Question 9

Delayering

Answer 9

taking away a level of hierarchy in the organisation structure - makes it flatter

Question 10

pros of delayering

Answer 10

• reduces costs
• quicker communication - shorter chain of command
• more power to lower levels

Question 11

cons of delayering

Answer 11

• fewer opps for promotion
• emplyoees have more work - same amount of work for less employees
• higher span of control for CEO
• redundancy costs

Question 12

centralization

Answer 12

when a business’ key decisions are made in HQ
* determines owrking hours
* marketing campaigns

Question 13

pros of centralization

Answer 13

• quick and easier decision making
• more control and standardization of the brand

Question 14

cons of centralization

Answer 14

• employee demotivation
• pressure of decision making at head office
• lack of flexibility

Question 15

decentralization

Answer 15

when a business’ key decisions are passed down to middle and junior-level managers within the business or other countries

Question 16

pros of decentralization

Answer 16

• decisions are more tailored to the local culture
• empower other parts of the business - improved morale and teamwork

Question 17

cons of decentralization

Answer 17

• lack of consistency across the business
• decisions may not be made with the whole business in mind

Question 18

Matrix structure

Answer 18

• project based
• structure that creates temporary teams for a specific project
• balance - flexibility / confusion

Question 19

Charles handy’s shamrock organization

Answer 19

core staff - full time permanent workers
temporary workforce - part time
outsource (subcontractors) - business hires other business to perform specific tasks

ex. school
teachers
substitutes
school cleaning