Management and organizational structure Flashcards
- Fundamentals and theoretical foundations of organizational structure
Hierarchy
Definition:
Importance:
Definition: The arrangement of levels of authority and responsibility within the organization.
Importance: Provides a clear line of authority and helps in understanding reporting relationships.
Roles and Responsibilities
Definition:
Importance:
Definition: The specific tasks, duties, and authorities assigned to individuals or positions within the organization.
Importance: Clarifies expectations, reduces ambiguity, and ensures that everyone understands their contributions.
Departmentalization
Definition:
Importance:
Definition: The process of grouping individuals and tasks into functional areas or departments based on similarities in skills, functions, products, geography, or customers.
Importance: Facilitates specialization, coordination, and efficient use of resources.
Span of Control
Definition:
Importance:
Definition: The number of subordinates or employees that a manager or supervisor can directly manage.
Importance: Influences the level of control, communication effectiveness, and the efficiency of decision-making.
Chain of Command
Definition:
Importance:
Definition: The formal line of authority and communication that extends from the top of the organization to the lowest level.
Importance: Establishes reporting relationships and ensures a clear flow of information.
Centralization and Decentralization
Definition:
Importance:
Definition: Centralization involves concentrating decision-making authority at the top levels, while decentralization disperses it to lower levels.
Importance: Affects the speed of decision-making, employee empowerment, and organizational flexibility.
Formalization
Definition:
Importance:
Definition: The extent to which rules, procedures, and job descriptions are explicitly documented.
Importance: Impacts consistency, predictability, and control within the organization.
Organizational Chart
Definition:
Importance:
Definition: A visual representation of the organizational structure, depicting relationships, roles, and reporting lines.
Importance: Provides a quick overview of the organization’s structure and hierarchy.
Unity of Command
Definition:
Importance:
Definition: The principle that each employee should have one direct supervisor or reporting relationship.
Importance: Reduces confusion, prevents conflicting instructions, and ensures accountability.
Adaptability and Flexibility
Definition:
Importance:
Definition: The ability of the organization to respond to changes in the internal and external environment.
Importance: Ensures the organization can adjust its structure to meet evolving demands and challenges.
