Chapter 13 - Organisational Structure Flashcards
Organizational Structure
The internal, formal framework of a business that shows the way in which management is organized and linked together, and how authority is passed through the organization
Functional Structure
Departments have clearly defined roles and responsibilities in a specialist area such as marketing, finance, human resources or operations
Functional Manager
Senior employee who has authority over a complete organizational unit.
Hierarchical Structure
A structure consisting of multiple levels in which all members of the organization, apart from one, are subordinate to someone else
Level Of Hierarchy
A stage of there organizational structure where all personnel have equal status and authority.
Span of control
The number of subordinate employees directly accountable to a manager
Chain Of Command
This is the route through which authority from the chief executive and the board directors is passed down through an organisation.
Divisional Organisational Structure
A structure that organizes the activities of a business around geographical areas or product groups.
Delayering
Removal of one or more of the levels of hierarchy from an organisational structure.
Matrix Structure
An organisational structure that creates project teams that cut across traditional functional departments.
Delegation
Passing down authority in the organisational heirarchy.
Accountability
The obligation of the individual to account for and explain their actions and to disclose the results of their work honestly.
Control
To measure and supervise an employe’s performance.
Authority
The power to give orders and make decisions.
Centralisation
Keeping all the important decision-making powers within head office or the centre of the organisation.
