Section 2 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, HR, or operations
Functional manager
Senior employee who has authority over a complete organization 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 the organizational structure where all personal have equal status and authority
Span of control
The number of subordinate employees directly accountable to the manager
Chain of command
This is the route through which authority from the chief executive and board of directors is passed down through an organization
Divisional organization 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 organizational structure
Matrix structure
An organizational structure that creates project teams that cut across traditional functional departments
Delegation
Passing authority down the organizational hierarchy
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 employee’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 organization
Decentralization
Decision-making powers are passed down the hierarchy to empower subordinates and area/product managers
Line manager
Managers who have direct authority over people, decisions and resources within the hierarchy of an organization
Staff manager
Managers who, as specialists, provide support, information and assistance to senior managers
Effective communication
The exchange of information between people or groups, with feedback
Communication methods
The media used to communicate messages
Visual communication
Conveying information or ideas in forms that can be seen