2.2

what do organizational structures determine? and what are they dependent on?

what do organizational structures determine? and what are they dependent on?

• the way tasks are allocated

• the supervision between employees so that organizational aims are achieved

• they are dependent on the organizational’s objectives

what are the different organizational structures?

1. delegation

2. span of control

3. hierarchy and levels of hierarchy

4. chain of command

5. bureaucracy

6. centralization and decentralization

7. delayering

8. matrix structure

what is delegation?

delegation is the process of shifting tasks of decision-making choices to a lower level of the hierarchy. This can be effective as employees feel empowered thus, increasing productivity. This can only be done is the tasks are: repetitive, if it fits another employee’s skills than the delegator, and is it requires less expertise. However, the delegator is still responsible for the outcome.

what is span of control?

the span of control is the number of subordinates that a supervisor can directly supervise and it depends on the nature of work. It has 2 types:

1. narrow span of control: where few people are supervised and it is often used with highly complex and varied work where employees need ongoing support. However, it increases the distance between managers and employees which decreases communication and productivity

2. wide span of control: where a supervisor can supervise up to a dozen people and it is usually adapted in more repetitive, defined, and tasks that requires less supervision.

what is hierarchy and levels of hierarchy?

It determines the span of control and the direction the communication flows between stakeholders. It includes:

1. tall (vertical) organizational structure: where the span of control is narrow and communication usually flows mostly from top down, meaning that there are large hierarchal structures

2. flat (horizontal) organizational structure: It is where decision-making is delegated to employees, increasing employee participation and motivation. The span of control is wide and communication flows both ways.

what is the chain of command?

It is the line of authority and responsibility along which orders are passed from one person to another. In order to ensure efficient decision making, the chain of command should be clear. It includes:

1. long chain of command = many levels of hierarchy: where is takes a long time for communication to reach the bottom layer of employees hence, slowing down the process of reacting to issues and can cause customer dissatisfaction.

2. short chain of command = fewer levels of hierarchy: it is where communication flows faster which increases the rate at which employees react to problems further making it more efficient to deal with problems.

what is bureaucracy?

Bureaucracy is a system of administration with clear hierarchal structure, in which people are expected to follow precisely defined rules and procedures. It is used to describe formal rules, communication, and impersonal relationships and can be usually found in military and political organizations.

what is centralization and decentralization?

Centralization is a situation where one individual or small groups of top managers make decisions about the company’s direction which creates a level of hierarchy. it is usually used by small companies, where the owner is responsible for all the business activities.

Decentralization is where many decisions are NOT taken at the center of the business but rather delegated to a lower level of management, ensuring that there is communication and collaboration between employees.

what is delayering?

Delayering is the process of which it reduces the number of levels in the organizational hierarchy, thus improving efficiency and communication. It can lead to more delegation of tasks and empowered employees which increases motivation. This process does not involve cutting jobs, but rather involve a wider span of control.

what is the matrix structure?

The matrix structure includes a process where team members report to multiple managers including a project manager and a department manager. In each team there are representatives whom are specialists that need to work on the project. This method allows for great autonomy, stimulates cooperation, establishes new relationships, and gives employees the opportunity to acquire new skills.