Studied by 5 people
Levels of hierarchy
The level of responsibility in the business
Chain of command
The formal route that a decision in an organization must follow, usually from the top to the bottom
Span of control
The number of subordinates directly under the authority of a manager
Delegation
Giving the subordinate the authority to make a particular decision
Centralization
All major decisions in the business are made by a small group (managers) that works closely with the CEO
Decentralization
Daily operations and decisions are delegated to middle and lower-level managers
Bureaucracy
The relative importance of rules and procedures. More bureaucracy means more rules and paperwork.
De-layering
Removing a layer in the hierarchy of the business, intended to make the business less bureaucratic
Reasons for de-layering
Costs are reduced, communication speed is increased, delegation is fomented
Tall organizational structure
Many levels of hierarchy, narrow spans of control, long chains of command, centralized.
Flat organizational structure
Few levels of hierarchy, wider spans of control, shorter chains of command, decentralized
Organizational structure by hierarchy
Shows the chain of command in a particular business
Organizational structure by function
An organizational structure where employees are grouped by departments
Organizational structure by product
An organizational structure based on what a particular business produces
Organizational structure by region
Organizational structure present in businesses that carry out certain activities in different parts of the world.
Project-based organization
A market structure in which employees are organized around different projects that a firm carries out
Shamrock organization
A market structure in which a business trims its workforce to retain only multi-skilled core. All other non-central functions are outsourced.
Organizational roles
CEO, Director, Manager, Supervisor, Employee
Note
Flashcard