TERMS Unit 2: HR management Chapter 8: Organisational structure

organisational structure

the internal, formal framework of a business that shows the way in which management is organised and linked together and how authority is passed through the organisation

delegation

passing authority down the orgaisational hierarchy

accountability

the obligation of an individual to account for his or her activities and to disclose results in a transparent way

span of control

the number of subordinates reporting directly to a manager

level of hierarchy

a stage of the organisational structure at which the personnel on it have equal status and authority

tall (vertical) organisational structure

one with many levels of hierarchy and, usually, narrow spans of control

flat (horizontal) organisational structure

one with few levels of hierarchy and wide span of control

chain of command

this is the route through which authority is passed down an organisation - from the chief executive and the board of directors

bureaucracy

an organisational system with standardized procedures and rules

centralisation

keeping all of the important decision-making powers within head office or the center of the organisation

decentralisation

decision-making powers are passed down the organisation to empower subordinates and regional/product managers

delayering

removal of one or more of the levels of hierarchy from an organisational structure

matrix structure

an organisational structure that creates project teams from across traditional functional departments

hierarchical structure

a structure in which power and responsibility are clearly specified and allocated to individuals according to their standing or position in the hierarchy

project based organisation (PBO)

undertake most of their activities through temporary project teams, often with a small central administrative department overseeing them