2.2 Organizational structure key term

Business Management

Delegation

The passing on and entrusting of certain tasks from managers to subordinates.

Span of Control

The number of subordinates who are directly accountable to a manager

Hierarchy

An organizational system that is based on ranking

Line manager

Person directly above an employee on the next hierarchy level

Chain of command

A system by which orders and instructions are passed down in an organization.

Bureaucracy

The execution of tasks that are guided by excessively complicated administrative rules and procedures.

centralization

The concentration of power and decision-making in a single authority

Decentralization

The transfer of power and decision-making from a single authority to several/ groups

Delayering

The process of removing one or more levels in the hierarchy

Matrix Structure

A system in which employees report to several managers and work in cross-departmental teams.

Organizational Chart

A picture that represents the structure of an organization, showing the relationships of accountability and responsibility.

Structure

An arrangement of professional relations

Accountability

Who is held responsible for each particular job

Responsibility

Who is in charge of whom and in what role

Project-based organization

A type of org. structure that has HR organized around projects

Shamrock

Core: Full-time professional workers who are crucial

Outsourced: Subcontracted to specialist businesses

Temporary: Workers employed only when needed

Leadership

The ability to influence and guide people.

Leadership vs Management

Leadership = inspiration Management = organization

Leader sets vision, manager plans tasks

Autocratic leadership

Leaders make decisions alone without any employee input.

• Pros: fast decisions, clear direction.

• Cons: Demotivating, no employee input.

Paternalistic Leadership

Leader acts like a parent, expresses superiority and treats subordinates as they are family.

• Pros: Supportive, suitable for inexperienced employees at the start of their career.

• Cons: Can be controlling, limits independence, Employees interests might be neglected.

Democratic leadership

Leaders involve employees in decision-making.

• Pros: Motivating, more innovations, better ideas.

• Cons: Slow, not suitable during crisis, loss of control.

Laissez-faire Leadership

Leader has minimal interference with the work or the subordinates. relies on high levels of staff motivation.

• Pros: Encourages creativity, Builds trust and motivation, suitable for Skilled professionals.

• Cons: Can lead to chaos, lack of direction, relies heavily on teamwork, Not suitable for inexperienced employees

Situational Leadership

Leadership style where the leader chooses the most appropriate style in the given situation.

Scientific management and decision-making

• Decisions based on data and logic.

• Rational, methodical, systematic.

• Eg. Hiring using tests and performance data.

• Pros: Objective, efficient.

• Cons: Ignores human emotions.

Intuitive Management

• Decisions based on instinct and experience.

• Irrational, emotional, unsystematic.

• Eg: Promoting someone based on “gut feeling”

• Pros: Fast, Flexible.

• Cons: Biased, less reliable.

Reality

• Combination of Scientific + Intuitive

• Use data, then apply experience to decide.