2.2(organizational structure)

Organizational chart

Depicts the reporting within an organization. All levels of the organization are depicted down to the least senior level.

Hierarchy

A system organizing or ranking people according to importance or power.

Chain of command

Official hierarchy in an organization. Who reports to who

Span of control

Number of people reporting to a specific manager. Wide means many people reporting to manager narrow opposite

Delegation

Assigning authority or responsibility over a task from a manager to someone lower on chart. Manager is still accountable for the task

Bureaucracy

Any organization with multiple layers of authority.

Centralization

Meaning that all major decisions are made by a small group of managers close to the head of business. Delegation rarely happens

Decentralization

Opposite of centralization. A lot of delegation from the central offices to other offices

Delayering

Process of removing layers of hierarchy in an organization. The aim is to improve efficiency and reduce costs

Matrix structure

Typically exist in contexts where project and project involve different expertise from different areas. People work in teams and report to people with different expertise. Thus, reporting to more than one person.

Types of organizational structures

Tall: many levels, narrow, centralized

Flat: Few levels

Organizational Structure and hierarchy

Traditional authority decreases by level

Structure by function

Organized by senior in department

Structure by product

Each product line may have own team, useful for diverse product ranges

Structure by region

Organized by geographical areas, local decisions

Project-based organization

Organizes work intro projects, making temporary systems for carrying out different projects. Teams are made and broken up as projects change often borrowing members from other teams, common in IT

Shamrock organizations

Three types of employees, full time professionals core, flexible labor force and contractual group