Chapter 2.2 - Organizational Structure

Question 1

Accountability

Answer 1

Describes the extent to which a person is held responsible for the success of failure of a task or job. It allows senior managers to have better control over the running of their organizations

Question 1

Bureaucracy

Answer 1

The official administrative and formal rules of an organization that govern business activity. It involves prescribed rules and policies, standardized procedures, and formal hierarchical structures

Question 2

Centralization

Answer 2

Occurs when the majority of decision making is done by a very small number of people who hold decision-making authority and responsibility

Question 3

Chain of command

Answer 3

Refers to the formal line of authority, shown in an organization chart, through which formal communications and orders are passed down

Question 4

Decentralization

Answer 4

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

Question 5

Delayering

Answer 5

The process of removing levels in the hierarchy to flatten the organizational structure, thereby widening the span of control in the hierarchy

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 or role

Question 7

Flat/horizontal organizational structure

Answer 7

There are only a few layers in the formal hierarchy and hence managers have a relatively wide span of control

Question 8

Hierarchy

Answer 8

Business refers to the organizational structure baed on a ranking system. Each hierarchical level refers to a different rank with its associated degree of authority and responsibility