2.5 Flashcards
What does an organisational structure outline?
outlines reporting relationships, roles, responsibilities of employees in the organisation
What are the benefits of a well-designed organisational structure?
helps promote clarity, efficiency and accountability
What is a hierarchy in organizational design?
levels of authority within an organisation, describing the ranking of positions from top to bottom
How does a hierarchy distribute authority and power?
the higher the position in the hierarchy, the more authority and power it holds
What are the typical levels included in a hierarchy?
top-level management
middle level management
lower level employees
What is the chain of command in organizational design?
formal line of authority that flows downward from top management to lower-level employees
What does the chain of command define?
who reports to who and who is responsible for making decisions within organisation
What are the benefits of the chain of command?
helps establish a clear communication channel and maintain accountability
What is span of control in organizational design?
span of control refers to the number of employees that a manager or supervisor can effectively manage
What principle is span of control based on?
principle that a manager can only effectively manage a limited number of employees
How does span of control affect the layers of management?
a narrower span of control results in more layers of management
wider span of control results in fewer layers of management
Front:
What is a centralized structure in organizational design?
where decision making authority is concentrated at the top of the organisation with senior managers making most of the decisions
What is a decentralized structure?
where decision naming authority is distributed throughout the organisation, with lower-level employees having more decision-making power
What are the potential benefits of decentralization?
can promote flexibility and innovation within organisation
What are the potential benefits of centralization?
Centralization can promote consistency and control within the organization.
What are the two main types of organizational structure?
hierarchical (tall)
flat
What characterizes a tall organizational structure?
characterised by multiple levels of management and more centralised decision-making process
What characterizes a flat organizational structure?
characterised by fewer levels of management and more decentralised decision-making process
What are the advantages of a hierarchical (tall) organizational structure?
providing clear hierarchy of authority
promoting specialisation and expertise
offering opportunities for career advancement and promotion
What are the advantages of a flat organizational structure?
promoting a culture of collaboration
open communication
faster and more efficient decision-making
encourages creativity and innovation.