Organization and Structure Flashcards
Centralization*
Extent to which decisions and policies originate from the top of an organization’s hierarchy, and/or communication flows from the top ranks. Becomes more difficult as span of control increases.
Decentralization*
Extent to which decisions and policies originate from the lower ranks of an organization’s hierarchy.
Flat Structure
A type of organization hierarchy with few levels and wide spans of control.
Tall Structure
A type of organization hierarchy with many levels and smaller spans of control.
Hierarchy*
An organization’s chain of command; tiers of authority that define supervisor-subordinate relationships.
Tiers**
Levels within a hierarchy.
Organization structure/types
Relatively enduring features that define a hierarchy of authority, work units, subsystems, and individual roles.
Centralization Example
McDonald’s Corporate headquarters specifies uniform procedures for making French Fries in all restaurants, world-wide.
Tall Structure Example
Exxon Mobile: 20 levels and spans of control around 5.
Flat Structure Example
Baxter Health Care: 6 levels and spans of control above 20.
Hierarchy Example
Ranking in airplane pilot crew: Pilot, co-pilot, attendants
Hierarchy Typical Tiers
- Chief Executive/CEO
- Executives
- Managers
- Supervisors
- Front-line employees
Chief Executive/CEO
Highest rank, responsible for the whole organization.
Executives
Managers who report directly to the CEO. Can include the COO (Chief Operating Officer), CFO (Chief Financial Officer), or the CIO (Chief of Information Officer).
Managers
Responsible for supervising lower-ranking managers or supervisors.
