Section 2.2: Organizational Structure

Flashcards covering key concepts from Section 2.2 on organizational structure, including terms like organizational chart, hierarchy, chain of command, span of control, delegation, centralization, decentralization, delayering, and matrix structure.

What is an organizational chart?

An organizational chart depicts the reporting relationships and levels within an organization, showing who reports to whom down to the least senior employees.

What is meant by 'hierarchy' in an organization?

Hierarchy is a system organizing or ranking people according to importance or power, where each level indicates line managers with decision-making power and responsibility for outcomes.

What does a chain of command describe?

The chain of command is the official hierarchy in an organization, indicating who reports to whom and which manager has authority over specific employees.

What is the 'span of control'?

The span of control is the number of people reporting to a specific manager. A wide span means many people report to a manager, while a narrow span means a small amount report to them.

What is delegation, and who remains accountable?

Delegation is assigning authority or responsibility for specific tasks from a manager to someone lower in the organizational chart. The manager remains accountable for the successful delegation of the task.

What happens in a centralized organization?

In a centralized organization, personnel at the main or central office retain all key decision-making authority, and others implement those decisions. This can also occur when senior management at one location retains all key decisions.

What is decentralization?

Decentralization is when decision-making authority is delegated outside of the main office, giving managers in regional or outlying offices authority for many tactical and operational decisions.

What is delayering and what is its aim?

Delayering is the process of removing levels of hierarchy in an organization, aiming to make it more efficient by decreasing bureaucracy.

How does a matrix structure operate?

A matrix structure involves people working in teams on projects that require diverse skill sets and expertise from different areas of the organization. Individuals report to more than one person (e.g., a functional manager and a project manager).

How does 'hierarchy' relate to an 'organizational chart'?

An organizational chart depicts the hierarchy, showing the levels of authority and who reports to whom.

Explain the relationship between 'delegation' and 'decentralization'.

Delegation means giving tasks or authority to another. Decentralization happens when decision-making power is systematically delegated away from a central office.

How does 'delayering' influence an organization's 'span of control'?

Delayering (removing hierarchy levels) widens the span of control. Managers oversee more direct reports, which can decrease bureaucracy.

Evaluate the potential advantages and disadvantages of a 'centralized organization' compared to a 'decentralized organization'.

Centralized organizations offer tight control and consistency but can be slow. Decentralized organizations allow quick local decisions and empowerment, but risk inconsistency.

Discuss how a 'matrix structure' challenges the traditional concept of a single 'chain of command'.

A matrix structure challenges the 'chain of command' because individuals report to multiple managers (e.g., project and functional). This offers flexibility but can lead to role confusion due to dual authority.