Organisational Structure Flashcards
definition, Key Elements and Why It Matters (20 cards)
What is Organisation Culture
Organizational structure is the formal framework that defines how tasks are divided, grouped, and coordinated within a business to achieve its goals. Think of it as the company’s internal blueprint, outlining who does what, who reports to whom, and how information flows.
Key Elements
Work Specialisation
Breaking down tasks into smaller, specialized jobs
Key Elements
Departmentalization
Grouping jobs by function (e.g., Marketing, Finance), product, customer, or geography
Key Elements
Chain of Command
The clear line of authority from top to bottom
Key Elements
Span of Control
The number of employees a manager can effectively supervise
Key Elements
Formalisation
The degree to which rules and procedures guide employee behavior
Key Elements
Centralization/Decentralization
Where decision-making authority lies (top vs. dispersed)
Why it Matters
Provides Clarity
Employees understand their roles and responsibilities
Why it Matters
Boosts Efficiency
Streamlines processes and reduces confusion
Why it matters
Improves communication
Ensures smooth information flow
Why it Matters
Fosters Accountability
Clearly defines who is responsible for what
Why it Matters
Supports Growth
Allows the company to scale and adapt
