Unit 2.2: Organisational structures Flashcards
Organisational structures
Bureaucracy
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.
Accountability
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.
Centralization
The situation where decision-making is predominantly made by a very small group of senior managers at the top of the organizational hierarchy.
Chain of command
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.
Communication
The transfer of information from one entity to another. It is vital to how a business operates.
Decentralization
The situation in an organization where decision-making authority is delegated throughout, rather from a central authoritative group.
Delayering
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.
Delegation
The act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project, or job role.
Flat structure
Type of organizational structure that has few levels in the organizational hierarchy.
Hierarchical (hierarchy)
A type of organizational structure that is tall/vertical, with many levels in terms of ranks.
Levels of hierarchy
The number of layers of formal authority in an organization. It is represented in an organizational chart.
Line manager
The person directly above an employee in the organizational structure of a business.
Managers
People responsible for the day-to-day running of the business or a department within the business.
Matrix structure
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.
Organization by function
Structuring a workforce according to business functions, i.e., specialised roles or tasks.
Organization by product
Structuring a workforce according to the goods or services sold. Each department focuses on a different product within the organization’s overall product portfolio.
Organization by region
Structuring a workforce according to different geographical areas based on where the firm’s operations are.
Organizational chart
A diagrammatic representation of an organization’s formal organizational structure.
Organizational structure
The formal interrelationships and hierarchical arrangements within a firm.
Outsourced workers (HL only)
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.
Peripheral workers (HL only)
According to Charles Handy, these are the contingent workers, consisting of part-time and temporary staff hired by the organization.
Professional core (HL only)
According to Charles Handy, these are the core workers consisting of full-time specialists who are vital for the organization’s operations and survival.
Project-based organization (HL only)
Also known as a matrix structure, this flexible organizational structure is based on the specific needs of a particular short-term or temporary project.
Responsibility
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.
Shamrock organization (HL only)
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.
Span of control
Refers to how many workers are directly accountable to (or under the authority of) a particular line manager.
Tall structure
Type of organizational structure that has many levels of hierarchy, so the span of control is likely to be narrow.
