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2.2 Organizational structure (Terminology (Levels of hierarchy (this term…
2.2 Organizational structure
Terminology
Levels of hierarchy
this term refers to how many levels of responsibility are in a business. Each level indicates a level of seniority in the business
Chain of command
this is the formal route by which a decision must travel through the organization. Traditionally, decisions travel from the top of the organization downwards and are therefore often referred to as commands
Span of control
Span of control refers to how many subordinates are directly under the authority of a manager and whom managers are responsible for
Delegation
this occurs when a manager gives authority for a particular decision but not the responsibility for the outcome
of that decision
Centralization
a high degree of centralization indicates that all major decision making is maintained within a small group of managers operating close to the head of the business.
Decentralization
this is the opposite of centralization
De-layering
this occurs when a business reduces the levels
of hierarchy by removing layers of management
Bureaucracy
indicates the relative importance of
rules and procedures(any administrative system)
Types of organizational chart
Tall
many levels of hierarchy
narrow spans of control
centralized decision making
long chains of command
autocratic leadership
limited delegation
Flat
few levels of hierarchy
wider spans of control
decentralized decision making
shorter ( though more diffuse) chains of command
democratic leadership
increased delegation
Hierarchy
Individuals at the top have more authority than those
below them
Function
Employees are grouped by department
Product
Region
Changes in organizational strutures
Project-based organization
This structure is designed to be more
fexible and responsive to market demands
Shamrock organization
The model suggests that businesses can reduce costs, gain competitive advantage and increase response time by trimming their workorce to retain only a
multiskilled core
All other supporting, non-central functions are outsourced wherever possible to the
periphery:
The frst leaf of the shamrock represents the core managers, technicians and employees essential to the business.
The second leaf Handy calls the contractual fringe, because non-core activities are subcontracted out to specialist businesses.
The third leaf consists of a flexible workforce made up of part- time, temporary, and seasonal workers
Communication
Verbal
meetings
lectures
presentations
telephone conversations ( recorded) .
Informal verbal communication
face- to- face conversations
gossiping
telephone conversations (unrecorded) .
Visual
reports
letters
notices
bulletins
forms
press releases.
Informal written communication
memos*
emails*
texts
blogs.