Business Structures Pt2.

Top Management

holding ultimate responsibility for the company’s long term success, strategic direction, and overall performance e.g. CEO

Middle Management

bridges the gap between top level strategy and operational execution, functioning as the tactical link in the organizational hierarchy e.g. department heads

Frontline Management

serving as the direct link between non management employees and middle/upper management e.g. retail store manager

Chain of Command

An unbroken life of authority that extends from the top of the organization all the way down to the bottom

span of control

is the number of employees directly managed by a manager

Delegation

is the process of distributing and trusting work to another person

functional

a functional organizational structure groups employees into departments based on specialized skills, roles, and core functions.

product

a product organizational structure aligns business units and development teams around specific products or product lines

division/location

a division/location structure is an organizational framework where a company is segmented into semi-autonomous divisions based on geographic regions, physical markets, or specific product lines

team based

a team based organizational structure breaks down rigid, top-down hierarchies by grouping employees into empowered, cross-functional teams to achieve specific shared goals