UNIT 3: COMPANY STRUCTURE

Chain of command

The structure in which an organization which allows instructions to be passed down from senior management to lower levels of management

Span of control

The number of subordinates working effectively directly under a manager

Line managers

People who have direct responsibility for people below them in the hierarchy of an organization

line authority

the power to give instructions to people at level below in the chain of command.

Hierarchy/chain of command

a system of authority with different levels, one above the other, e.g a series of management positions.

Delegation/delegate

Giving a subordinates the authority to perform a particular task

subordinates

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Decentralization

Taking a decision away from the center of an organization way from the the Head Office

The chain of command (line structure)

Organizations have a hierarchical or pyramidal structure. There is a clear chain of command running down the pyramid. Everyone in the structure knows their responsibility.

Functional structure

A disadvantage of functional organization is that people are often more concerned with the success of their own department than that of the company as a whole, so there are permanent conflicts.

Matrix management

People report to more than one superior. Matrices involving several departments can become quite complex, so it is sometimes necessary to give one department priority in decision making.

Teams

Wholly autonomous, temporary groups, teams are responsible for an entire project. Teams are not always very good at decision making, usually requiring a strong leader.

Supervisors

Junior managers who have direct control over the employees below them in the organizational structure.