2.2 Organizational Structure

Disadvantages of Delegation

- Employees may feel frustrated if they are unwilling to take more responsibility - Tasks may be repetitive and tedious - Employees may feel that they are doing the tasks of the manager for much less pay than the manager

Advantages of Delegation

- Empowers employees to make decisions - Builds skills and motivates employees - The manager will have free time for higher-priority tasks

Disadvantages of Delayering

- Increased span of control, which can increase the workload of managers - Can have negative impact on motivation if there were job cuts in the process - Not all companies are suited for organisational structures with few levels of hierarchy - People will have to take new responsibilities and time will be needed for adjustment

Advantages of Delayering

-Fewer managers are needed, which allows cost reduction -The organisation becomes less bureaucratic - Decisions can be made faster - Encourages innovation

Disadvantaged of centralized organization

-The many layers of bureaucracy make communication difficult. -More time will be needed to accomplish tasks.

What is a 'geographical organizational structure'?

A type of organisational structure where the work is organized by region

Which term is used to describe an organisational structure typified by rigidity and strong rules and procedures for communication and decision-making?

Bureaucratic structure

Which is the correct term for the line of communication from one level of hierarchy to another?

Chain of command

Disadvantages of decentralized organization

Different individual opinions may create difficulties in the organisation, especially in decision-making

Advantages of Centralized organization

Efficiency in making business decisions under pressure as those are made centrally by the top management

Delayering

HR strategy of reducing the number of levels in the organisational hierarchy

Advantages of decentralized organization

Manages to utilise the employees' expertise and knowledge at various level

What is the name for the organisational structure where a business is organised into different departments and each department deals with a specific product?

Organization by Product

What is the name for an organisation with core staff only, which outsources activities and functions to external contractors and temporary workers?

Shamrock organisation

An organisational structure with many levels of hierarchy, long chains of command and narrow span of control is called...

Tall organizational structure

hierarchy

a pyramid-like structure where each level (except the top and the bottom levels) has one higher and one lower level. The higher a level is in the hierarchy the greater the authority or importance. There can be a hierarchy of ideas, individuals or items.

chain of command

an organisation is the line of authority and responsibility along which orders are passed from one person to another

functional organisational structure

common type of organisational structure in which the organisation is divided into smaller groups based on specialised functional areas, such as marketing, production, finance, IT and others

Span of Control

describes the number of subordinates that a manager or supervisor can directly control. This number varies with the type of work: complex, variable work reduces it, whereas routine, fixed work increases it

organizational structure

determines how tasks are divided and coordinated, who employees report to, who has the authority to define tasks to employees and what the role of each employee is in the organisation

organisational chart

graphical illustration of relationships between an organisation's departments, functions and people

Project-based organisational structure

is a temporary structure which is created to facilitate the execution of a specific project. It can exist within all types of organisations

Delegation

is the assignment of responsibility or authority to another person to carry out specific activities

Flat organisational structure

limited levels of hierarchy wide span of control de-centralised short chains of command democratic leadership increased delegation of authority

Decentralisation

means a transfer of decision-making power. Decentralisation is usually achieved by delegation of authority to individual or groups at all levels of an organisation

Tall organisational structure

numerous levels of hierarchy narrow span of control centralised lengthy chains of command 'top-down' leadership limited delegation of authority

flat or horizontal organisational structure

one with few levels of hierarchy, typical for small businesses

tall organisational structure

structure with multiple levels of management, typical for large and complex organisations

Bureaucracy

system of administration with clear hierarchical structure in which people are expected to follow precisely defined rules and procedures. It is used to describe the formal rules in an organisation, the communication and impersonal relationships

product organisational structure

the business is organised into departments focused on different products