organisational structure Flashcards
man fuck this shit honestly
define delegation
assigning responsibility for a task to someone further down the chain of command
a manager or leader assigns authority and responsibility to subordinates to carry out specific tasks. It allows for more efficient use of time and resources while empowering employees and developing their skills.
the delegator (hands down work) is responsible for any outcomes
define span of control
number of people/emps that report to a manager
subordinates that supervisor can directly supervise
wide:
more subordinates per manager
narrow:
fewer subordinates per manager
define levels of hierarchy
number of layers of authority available. The layers of management and authority within an organization. More levels typically indicate a taller organizational structure.
define bureaucracy
system of administration w a clear hirarechal structure in which people/emps are expected to follow rules and procedures.
features
formal rules
no personal relationships/personal convos
define centralization
one 1 person or group of people (small) of TOP managers make decisions about the businesses direction.
A structure where decision-making power is held by senior management at the top of the organization. It can lead to more consistency but less flexibility.
define decentralization
team envio at diff levels to get goals. many dms r not taken at center of business - r delegated 2 lower lvls if and when needed/necessary.
The delegation of decision-making authority to lower levels in the organizational hierarchy. It encourages faster decisions and employee empowerment.
define matrix structure
team membs report to many managers (project and department) managers.
an organizational structure that combines functional and project-based divisions, where employees report to more than one manager. It enhances flexibility and collaboration but can cause confusion in authority.
define delayering
reducing the number of levels in an organization’s hirarechy
The process of removing one or more levels of hierarchy in an organization. It aims to improve communication and reduce costs.
5 types of organizational charts
flat
tall
structure by product
structure by function
structure by region
organizational chart is
a graphic illustration of the relationships between diff bus departments/area and emps in business
showcases the flow of communication, responsibility and reporting structure - to provide shareholders w clear info and idea of bus processes/operational processes
flat OS +/- and define
has few layers of hirarechy/short chain of command/wide span of control
good for small businesses/startups that dont have complex business structures and tasks.
+:
faster decision-making
improved communication
greater employee autonomy (staff are directly connected to seniors)
less labor costs
more efficiency and transperancy
enhance innovation and adaptability
-:
overworked emps since so small
more training costs
role ambiguity (dk what to do), overworked managers, and weaker oversight due to the broader span of control.
Limited Promotion Opportunities
Resistance to Formal Procedures
tall OS +/- and define
many lvls of authority/hirarechy/long chains of command (communication flows top down)
little to no delegation
narrow span of control
formal and bureaucratic usually
labor is highly specialized (specific roles)
“many levels of hierarchy with a narrow span of control, meaning each manager supervises a small number of subordinates. It features a long chain of command, emphasizing clear authority, roles, and responsibilities.”
+:
Clear Lines of Authority (accountability and discipline)
Opportunities for Promotion
Specialization and Expertise
Structured Decision-Making
Close Supervision
high support
-:
slow respond to changes
bad/hard communication
high labor cost (2 many emps)
Reduced Flexibility (harder to adapt quickly)
Lower Employee Empowerment (demotiv cuz sm supervision)
OS by product define +/-
bus organized into departments/devisions that focus on diff g/s
employees assigned to specific product or customer
employee focused on specific market segment related to specific g/s
“An organizational structure by product divides a business into departments based on the specific products or product lines it offers. Each product division operates like a semi-independent unit, often with its own marketing, finance, and operations teams.”
+:
meet needs better
encourage int competition to make bttr g/s
Product Focus (more specialization and customer focus also)
Improved Accountability (perf easily measured by product easier to identify good and bad)
Encourages Innovation
Supports Growth (easier to add new products n shit)
-:
duplication of function (more than one marketing department in each product deivison)
Internal Competition
no central control over each separate devision.
Inconsistency Across Products (brand inconsistency/packaging)
Coordination Challenges
Complex to Manage
OS by function define +/-
bus divided into smaller grps based on specialized functional areas
employee grped 2 specialized set of roles
“employees based on their specialized roles or tasks, such as marketing, finance, operations, and human resources. Each department is responsible for its own area of expertise.”
+:
operates well in stable envious
Specialization (emp skilled)
Easier for staff to develop within their area, supporting training and promotion.
Similar tasks grouped tgt»_space; economies of scale and streamlined workflows.
clear roles and responsibilities, reducing confusion (clear accountability)
Strong Departmental Leadership
-:
bureaucracy
hard to respond to changes in market quickly
Departments may focus on own goals rather than the O’s objs,»_space; poor coordination.
Slow Decision-Making (longer communication channels)
Lack of Product or Customer Focus (hard to tailor services to products to specific needs)
lim flexibility - departs may resist change
reduced innovation - less cross-functional collabs
OS by region define +/-
bus operations in diff geographical locations
commonly MNC’s
offices in each area - can operate individually following common regional policies and values
each location = overseen and directed by 1 or more managers
“roups operations based on geographical areas, such as continents, countries, or regions (e.g., North America, Europe, Asia). Each regional division typically handles all business functions for that area.”
+:
local responsiveness
faster dming locally
improved customer service (closer to market)
supports global expansion (ez to enter and manage new markets)
regional expertise develop (more knowledge
-:
duplication of function/roles
coord hard 0 aligning goals across diff regions
inconsistency in branding/strategy
complex management structure (monitoring and control more difficult cuz of more devisions)
risk of internal competition - regions may compete for resources or recognition reducing collabs and unity.
when is a functional structure best to use (STEEPLE (check notes also))
STEEPLE (check notes also)
1. Functional Structure
✅ Best suited when:
Economic stability exists – enables long-term specialization and efficiency.
Legal environments require standardization and compliance across departments.
Technological changes are incremental, not disruptive.
❌ Less appropriate when:
Rapid technological or market changes require flexible, fast decision-making.
Social trends demand a more customer- or product-focused approach.
Global expansion requires regional adaptation (not ideal for international operations).
when is a project based structure best to use? (STEEPLE (check notes also))
- Product-Based Structure
✅ Best suited when:
Technological change is fast-paced – allows focused innovation per product line.
Customer preferences are diverse and rapidly evolving.
Competitive pressure (economic) demands clear accountability and responsiveness in each product category.
❌ Less appropriate when:
Cost control is essential – resource duplication across product divisions is inefficient.
Legal or ethical standards require strong centralized control for consistency.
when is a regional structure best to use? (STEEPLE (check notes also))
- Regional Structure
✅ Best suited when:
Political and legal environments differ greatly across countries.
Social and cultural diversity requires tailoring products/services to local markets.
Environmental regulations vary regionally – allows local teams to comply efficiently.
❌ Less appropriate when:
The business needs consistent global branding or unified strategy.
There is economic downturn – regional duplication can be too costly.
Technology allows centralization (e.g., remote work, shared systems), reducing the need for regional autonomy.
when is a matrix structure best to use? (STEEPLE (check notes also))
- Matrix Structure
✅ Best suited when:
Technological advancements enable collaboration across functions and products.
The market demands innovation, flexibility, and cross-functional integration.
Ethical or environmental expectations require input from multiple departments (e.g., sustainability teams working across all divisions).
❌ Less appropriate when:
Economic conditions are tight – complex structure can be inefficient and costly.
There is a need for clear leadership – dual reporting can cause confusion or conflict.
In politically unstable regions – lack of clear authority may create operational risks.
when is a flat structure best to use? (STEEPLE (check notes also))
- Flat Structure
✅ Best suited when:
Technological tools (e.g., AI, automation, collaborative software) support autonomy and decentralization.
Social shifts value open communication, empowerment, and innovation (e.g., Gen Z workplace expectations).
Startups or ethical enterprises want transparency and trust-based cultures.
❌ Less appropriate when:
Legal compliance and bureaucracy are essential (e.g., finance, healthcare).
Large-scale operations require tight control and formal processes.
Environmental crises or scandals require clear chains of accountability.
when is a tall structure best to use? (STEEPLE (check notes also))
Appropriate When:
Legal and Political Environments are strict
→ Helps ensure compliance and control, which is essential in regulated industries (e.g., pharmaceuticals, finance, government).
Economic uncertainty
→ Businesses may prefer a tall structure to tighten control, reduce risk, and ensure resources are efficiently monitored.
Technological advancements are complex but not fast-changing
→ Allows departments to specialize in managing and implementing tech in their domain without frequent structure shifts.
Ethical concerns or reputational risk
→ Centralized decision-making reduces the chance of unethical behavior by ensuring oversight at every level.
Social expectations favor formal leadership or traditional hierarchies
→ In cultures or industries where status and hierarchy are valued (e.g., defense, banking), this structure works well.
❌ Less Appropriate When:
Technology and markets are rapidly evolving
→ Slower communication and rigid structure can delay decision-making, making it hard to respond quickly.
Social changes favor flat, agile, and collaborative work cultures
→ Gen Z and millennial employees often prefer empowerment, autonomy, and fast communication, which a tall structure can stifle.
Environmental crises or sustainability trends require fast adaptation
→ The slow response time in tall structures may hinder a company’s ability to act on urgent environmental initiatives.
Global or regional expansion requires localization
→ A centralized tall structure might not offer enough autonomy to regional branches dealing with unique political or legal conditions.
Handy’s shamrock organization define +/-
workers are divided into core/contract and temporary
Core Workers – Permanent, full-time employees with essential skills (e.g., leadership, strategy, operations).
Contractual – External specialists or contractors hired for specific tasks (e.g., IT consultants, designers).
Flexible/Part-Time Workforce – Temporary or part-time workers who provide flexibility and cost-effectiveness (e.g., seasonal staff, gig workers).
+:
change workforce as needed
flexible
resilient
cost efficiency (less labor costs)
access to expertise
motivated core staff
supports modern work trends (remote and gig economy)
-:
emp less enasgged cus task/role not perminant
less emps that r closely related/have close RS w business
reduced loyaly
coord issues (mix emps)
time consuming and complex
risk to company culture cuz sm diff values etc
knowledge drain - contractors may take valuable knowledge abt business - risking innovation of bus
project based organization define +/-
has 2 or more reporting structures - emp report to project and functional manager
“organizes teams around specific projects rather than functions, regions, or products. Staff are assigned to temporary project teams with clear goals, and after completing the project, they either move to another project or return to their functional department.
It’s commonly used in industries like construction, consulting, event management, and tech development.”
+:
freq changes
flexible (assemble and ressemble)
flexbible
strong focus and accountability (goal oriented teams w clear deadlines and outcomes)
enhanced innovation and creativity
efficient resource use
customer centric
-:
resource duplication
teams - isolated (self sufficient)
emp resist change
unclear LT roles and processes
weakened departmental identity - emp keep moving and changing
loss of knowledge transfer - loss of lessons leanrt
coord issues - many projects at once req strong leadership and planning
high labor costs - charging expertise
Holacracy define +/-
flat OS
teams of ppl self organize as needed to finish necessary wrok
distribution of authority and less managers
“decentralized organizational structure where decision-making authority is distributed across self-organizing teams called “circles” rather than a traditional management hierarchy. Each circle has defined roles, and individuals often hold multiple roles across circles. It promotes autonomy, transparency, and adaptability.
It’s used by companies like Zappos, and aligns with agile, startup, and tech cultures.”
+:
high automomy
high empowerment (make own dms in rols - ownership, engagement and motivation)
faster dming - no need for approvals
adaptability (evolving roles)
transparency - clear roles and open communication
encourages innovating
-:
hard to implement
role conduction
not suitable for all industries (formal/traditional - healthcare)
initial emp resistance
accountability issues - lack of clear managers
FEATURES:
roles rather than job descriptions
circle structure
organize develop
self sufficient
flex leadership
