2.2: Organisational Structure

Accountability

Accountability

extent to which a person is held responsible for the success or failure of a task, job, or project. It allows senior managers to have better control over the running of their organizations

Bureaucracy

administrative systems within an organization, such as the formal policies and procedures of the business. It includes the formal rules, regulations, and procedures of the organization

Centralisation

situation where decision-making is predominantly made by a very small group of senior managers at the top of the organizational hierarchy

Chain of Command

formal lines of authority in an organization

Communication

transfer of information from one entity to another

Decentralisation

situation in an organization where decision-making authority is delegated throughout, rather from a central authoritative group

Delayering

occurs when an organization removes one or more layers in its hierarchical structure

Delegation

act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project, or job role

Flat organisation

An organisation that has a flat structure

Flat Structure

organizational structure that has few levels in the organizational hierarchy

Hierarchical (Hierarchy)

type of organizational structure that is tall/vertical, with many levels in terms of ranks

Levels of Hierarchy

number of layers of formal authority in an organization. It is represented in an organizational chart

Line Manager

person directly above an employee in the organizational structure of a business

Managers

People responsible for the day-to-day running of the business or a department within the business

Matrix Structure

organizational structure that uses teams of employees with suitable skills and qualifications drawn from different departments or divisions of the business

Organisation by function

Structuring a workforce according to business functions

Organisation by product

Structuring a workforce according to the goods or services sold. Each department focuses on a different product within the organization’s overall product portfolio

organisation by region

Structuring a workforce according to different geographical areas based on where the firm’s operations are

organisational chart

diagrammatic representation of an organization’s formal organizational structure

organisational structure

formal interrelationships and hierarchical arrangements within a firm

outsourced workers (HL)

individuals or other organizations hired on a contract basis to carry out a specific but non-core role in Charles Handy’s Shamrock organization

Peripheral Workers (HL)

contingent workers, consisting of part-time and temporary staff hired by the organization

Professional core (HL)

core workers consisting of full-time specialists who are vital for the organization’s operations and survival

Project based organisation (HL)

flexible organizational structure is based on the specific needs of a particular short-term or temporary project

Responsibility

Refers to a line manager’s level of concern in term of the people they are in charge of

Shamrock Organisation (HL)

advocating that organizations must adapt to changes in the business environment by having a core workforce, contingent workforce, and outsourced vendors

Span of control

Refers to how many workers are directly accountable to (or under the authority of) a particular line manager

tall organisation

and organisation with a tall organisational structure

tall structure

many levels of hierarchy, so the span of control is likely to be narrow