Organizational structure

Question 1

What is Organisational structure?

Answer 1

a system that determines the flow of work and outlines how tasks are directed to achieve organisational goals

Question 2

What does organizational structure depend on?

Answer 2

• size of company
• degree of specialization for a particular job
• number of people who report to an individual manager
• culture & purpose

Question 3

Describe organizational charts

Answer 3

a graphic represenatation of a companys structure that communicates how a company is organized. The traditional way is a few senior managers at the top and a greater number of lower-level managers below.

Question 4

Elements of organisational structure II and define them

Answer 4

Centralization = organisational structure that gives top-level managers the authority to make decisions on behalf of the entire company
Decentralization = organisational structure where middle managers and lower-level employees are permitted to make decisions and suggestions, rather than just top-level management
Formalization = process of determining an organisation’s policies, procedures, and rules, usually in writing

Question 5

What are the factors determening the business structure

Answer 5

Business environment
Company size, strategy, techonolgy
Financial situation
Organizational life cycle

Question 6

Mechanistic vs Organic structure

Answer 6

Business Environment
Mechanistic = formalised structure based on high centralisation and departmentalization
Organic = less formalised structure based on decentralisation and cross-functional teams

Question 7

Define (Divison of labor, Departmentalazation, Chain of command)

Answer 7

Division of labor = level to which jobs are divided into specific tasks
Departmentalization = process of grouping activities into different types of departments within the overall organisational structure
Chain of command = flow of authority and power from the highest to the lowest levels of the organisation

Question 8

C-Suite (CEO,CFO,CMO,CIO,CTO,COO)

Answer 8

Chief executive officer (CEO): highest-ranking person of a company, the CEO is responsible for making major decisions, creating a corporate vision, and communicating with the board of directors about company strategy.
Chief financial officer (CFO): executive officer responsible for the financial operations of a company and is responsible for cash flow, financial risk, and financial strategy.
Chief marketing officer (CMO): executive officer responsible for marketing strategies in relation to the company’s offerings
Chief information officer (CIO): executive officer who oversees the planning, development, and implementation of technology inside the organization
Chief technology officer (CTO): executive officer responsible for technology creation and design, anticipating customer needs, and focusing on emerging technologies.
Chief operating officer (COO): executive officer responsible for overseeing the day-to-day functioning of the business

Question 9

What are the 4 traditional strucutres?

Answer 9

Simple, Functional, Divisional and Horizontal

Question 10

Define (Span of control, authority, responsibility, delegation)

Answer 10

Span of control = number of subordinates for whom managers are directly responsible
Authority = legitimate right to give orders and make decisions
Responsibility = personal obligation to perform tasks and reach specified goals
Delegation = process of transferring authority and responsibility to others to carry out certain tasks and activities