Organizational Structure

These flashcards cover key terms and definitions related to organizational structure, providing insights into how organizations are designed and how they function.

Organizational Structure

A system that coordinates people, tasks, and activities necessary to carry out a particular purpose.

Importance of Organizational Structure

It improves communication flow, establishes responsibilities, enables growth, and helps complete tasks efficiently.

Organizational Chart

A visual document that communicates how a company is organized.

Work Specialization (Division of Labor)

The degree to which jobs are divided into specific tasks.

Departmentalization

The process of grouping people with related job duties, skills, and experiences into the same area.

Chain of Command

The flow of authority and power from the highest to the lowest levels of the organization.

Span of Control

The number of direct reports a manager is responsible for.

Authority

The legitimate right given to managers to give orders and make decisions.

Responsibility

The personal obligation to perform preset tasks and reach specified goals.

Delegation

Transferring authority and responsibility to others to carry out certain tasks.

Centralization

A structure where top-level managers make decisions for the entire company.

Decentralization

A structure where employees at all levels can make decisions and suggest changes.

Formalization

The process of determining procedures, rules, and responsibilities for employees.

Simple Structure

Used in small businesses where decision-making is centralized with the owner.

Functional Structure

Groups employees by tasks they perform like marketing or finance.

Divisional Structure

Groups employees by products/services, geography, or customers.

Vertical Organizational Structure

Based on a chain of command with leaders at the top passing orders downward.

Horizontal (Flat) Organizational Structure

Focuses on teamwork and collaboration with fewer management layers.

Matrix Organizational Structure

Employees report to both functional and product managers in a grid system.

Flatter Structure

Some layers of management are removed but hierarchy remains.

Flatarchies

Structures combining hierarchy and flat team elements, often for innovation.

Holacratic Organizational Structure

Distributes decision-making to self-managed 'boss-less' teams or circles.

Boundaryless Organizational Structure

Removes borders to improve communication, innovation, and efficiency.

Virtual Organizational Structure

Employees are geographically spread and collaborate via digital tools.

Key Factors Influencing Organizational Structure

Environment, strategy, technology, size, and financial condition.

Mechanistic Model

A formalized structure based on centralization and departmentalization.

Organic Model

A less formal structure based on decentralization and cross-functional teams.

Differentiation in Organizational Structure

Dividing the organization into departments with their own autonomy.

Integration in Organizational Structure

Bringing parts of the organization together to achieve a common goal.