Unit 2.2 - Glossary of Key Terms: Organizational Structure

A set of flashcards covering key vocabulary terms related to organizational structure, exploring definitions and concepts relevant to business operations.

Accountability

The extent to which a person is held responsible for the success or failure of a task, job, or project.

Bureaucracy

The administrative systems within an organization, including formal policies and procedures.

Centralization

Decision-making is predominantly made by a small group of senior managers at the top of the organizational hierarchy.

Chain of command

The formal lines of authority in an organization that show how commands and decisions are communicated.

Communication

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

Decentralization

Decision-making authority is delegated throughout an organization rather than being concentrated at the top.

Delayering

The removal of one or more layers in a hierarchical structure, making it flatter.

Delegation

The act of line managers entrusting employees with authority to complete a specific task or project.

Flat organization

An organizational structure with only a few layers of management, also known as a horizontal structure.

Flat structure

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

Hierarchical (hierarchy)

A tall or vertical organizational structure with many levels of authority.

Levels of hierarchy

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

Line manager

The person directly above an employee in the organizational structure.

Managers

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

Matrix structure

A flexible organizational structure using teams from different departments for various projects.

Organization by function

Structuring a workforce according to specialized roles or tasks.

Organization by product

Structuring a workforce according to the goods or services sold, with each department focusing on a different product.

Organization by region

Structuring a workforce according to geographical areas based on the firm's operations.

Organizational chart

A diagrammatic representation of an organization’s formal structure.

Organizational structure

The formal interrelationships and hierarchical arrangements within a firm.

Outsourced workers

Individuals or organizations hired on a contract basis to perform specific roles.

Peripheral workers

Part-time and temporary staff hired by the organization, as defined by Charles Handy.

Professional core

Full-time specialists who are vital for an organization's operations, as per Charles Handy.

Project-based organization

A flexible structure based on the specific needs of temporary projects.

Responsibility

A line manager’s level of concern regarding the people they oversee.

Shamrock organization

A flexible organizational structure by Charles Handy, incorporating a core workforce, contingent workforce, and outsourced vendors.

Span of control

The number of workers directly accountable to a particular line manager.

Tall organization

A vertical structure with many layers in the hierarchy.

Tall structure

An organizational structure with many levels of hierarchy, likely resulting in a narrow span of control.