Unit 2.2: Organisational structures

Question 1

Bureaucracy

Answer 1

The administrative systems within an organization, such as the formal policies and procedures of the business. It includes the formal rules, regulations, and procedures of the organization.

Question 1

Accountability

Answer 1

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

Question 2

Centralization

Answer 2

The situation where decision-making is predominantly made by a very small group of senior managers at the top of the organizational hierarchy.

Question 3

Chain of command

Answer 3

The formal lines of authority in an organization. It can be seen via an organizational chart, which shows the formal path through which commands and decisions are communicated from senior managers to subordinates.

Question 4

Communication

Answer 4

The transfer of information from one entity to another. It is vital to how a business operates.

Question 5

Decentralization

Answer 5

The situation in an organization where decision-making authority is delegated throughout, rather from a central authoritative group.

Question 6

Delayering

Answer 6

This occurs when an organization removes one or more layers in its hierarchical structure, i.e., the number of layers of management is reduced, or made flatter.

Question 7

Delegation

Answer 7

The act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project, or job role.

Question 8

Flat structure

Answer 8

Type of organizational structure that has few levels in the organizational hierarchy.

Question 9

Hierarchical (hierarchy)

Answer 9

A type of organizational structure that is tall/vertical, with many levels in terms of ranks.

Question 10

Levels of hierarchy

Answer 10

The number of layers of formal authority in an organization. It is represented in an organizational chart.

Question 11

Line manager

Answer 11

The person directly above an employee in the organizational structure of a business.

Question 12

Managers

Answer 12

People responsible for the day-to-day running of the business or a department within the business.

Question 13

Matrix structure

Answer 13

A flexible type of organizational structure consisting of team members from different departments or divisions of the business who work together temporarily on a particular task or project. The team are also working in their functional roles at the same time.

Question 14

Organization by function

Answer 14

Structuring a workforce according to business functions, i.e., specialised roles or tasks.

Question 15

Organization by product

Answer 15

Structuring a workforce according to the goods or services sold. Each department focuses on a different product within the organization’s overall product portfolio.

Question 16

Organization by region

Answer 16

Structuring a workforce according to different geographical areas based on where the firm’s operations are.

Question 17

Organizational chart

Answer 17

A diagrammatic representation of an organization’s formal organizational structure.

Question 18

Organizational structure

Answer 18

The formal interrelationships and hierarchical arrangements within a firm.

Question 19

Outsourced workers (HL only)

Answer 19

Also known as outsourced vendors or the contractual fringe, these are the individuals or other organizations hired on a contract basis to carry out a specific but non-core role in Charles Handy’s Shamrock organization.

Question 20

Peripheral workers (HL only)

Answer 20

According to Charles Handy, these are the contingent workers, consisting of part-time and temporary staff hired by the organization.

Question 21

Professional core (HL only)

Answer 21

According to Charles Handy, these are the core workers consisting of full-time specialists who are vital for the organization’s operations and survival.

Question 22

Project-based organization (HL only)

Answer 22

Also known as a matrix structure, this flexible organizational structure is based on the specific needs of a particular short-term or temporary project.

Question 23

Responsibility

Answer 23

Refers to a line manager’s level of concern in term of the people they are in charge of. An organization chart shows the breadth and depth of a person’s roles and responsibilities in the business.

Question 24

Shamrock organization (HL only)

Answer 24

Type of flexible organizational structure, coined by Charles Handy, advocating that organizations must adapt to changes in the business environment by having a core workforce, contingent workforce, and outsourced vendors.

Question 25

Span of control

Answer 25

Refers to how many workers are directly accountable to (or under the authority of) a particular line manager.

Question 26

Tall structure

Answer 26

Type of organizational structure that has many levels of hierarchy, so the span of control is likely to be narrow.