Delegation

the transfer of responsibility for specific tasks from one level to a lower one. delegate is still responsible for outcome.

Span of control

Number of subordinates over whom a manager or supervisor has direct control. Wide: more delegation, reduces supervision, better job enrichment Narrow: tighter supervision, less chance of mistake.

Levels of hierarchy

to the number f layers of authority within a business. Tall: many levels, narrow span of control. (top-down) Flat: few levels, wide span of control. (top-down and bottom-up)

Chain of command

line of authority and responsibility along which orders are passed from one person to another. ensures efficiency and effective decision-making.

Bureaucracy

a system of administration with clear hierarchal structure in which people are expected to follow precisely defined rules and procedures.

Centralization

where only one individual or small group of top managers makes decision about the company's direction

Decentralization

gives authority for decision making to employees lower down on the organizational structure.

Delayering

reducing the number of levels in the organizational hierarchy helps improve efficiency by improving communication ADV: reduction in wages DIS: job losses, decreased motivation, loss of knowledge from fired employees

Matrix structure

a structure where team members report to multiple managers, they report to a project manager and department manager

Tall organizational structure adv/dis

ADV: authority is establishes, promotion is available and motivating, junior employees receive more support from managers DIS: responds slowly to change, communication is slow, can increase labor costs

Flat organizational structure adv/dis

ADV: delegation can allow employees a variety of jobs, motivation and productivity are high, keeps labor costs lower DIS: managers may be overworked with many junior employees, high training costs

Organizational Structure by product

the business is organized into departments or division. each department focuses on a different product. ADV: clear focus on marker segment to meet customer needs. Positive competition between divisions. Better control as each division acts as separate profit centre DIS: duplicate of funtions. Negative effects of competition on quality. Lack of central control over each division which may dilute the brand

Organizational Structure by function

the organization is divided into smaller groups based on specialized functional areas, such as marketing, finance, ect. ADV: specialization, accountability, clarity DIS: closed communication -> lack of focus. Departments can become resistant to change. Coordination may take too long

Organizational structure by region

when operations are in different geographical locations ADV: serve local needs better, positive competition, more effective communication between firms and customers DIS: conflict between local and central management. Duplication of resources and functions

Project based organizations

activities are carried out by temporary teams who are assembled for a specific project.