Organizational Structure Concepts

Front

What is the organizational structure of a business?

Back

The internal formal framework of a business that shows the way in which management is organized and linked together and how authority is passed through an organization.

Front

What is the chain of command?

Back

The route through which authority is passed down an organization – from the chief executive and the board of directors.

Front

What does span of control refer to?

Back

The number of subordinates reporting directly to a manager.

Front

What is a level of hierarchy?

Back

A stage of the organizational structure at which the personnel on it have equal status and authority.

Front

The removal of one or more of the levels of hierarchy from an organizational structure.

Back

Delayering

Front

:

The assignment of authority to another person to carry out specific activities. It is the process of distributing and entrusting work to another person, and therefore one of the core concepts of management leadership; it is the passing authority down the organizational hierarchy.

Back

Delegation

Front

Centralization

Back

Keeping all of the important decision-making powers within head office or the center of the organization.

Front

Decision-making powers are passed down the organization to empower subordinates and regional/product managers.

Back

Decentralization

Front

Bureaucracy

Back

An organization's formal administrative rules governing its business activities.  These will be written policies rules and procedures, as well as the formal  company hierarchy.

Front

This is the most common organizational structure as businesses have different functional roles such as Finance, Production, Marketing and Human Resources.

Back

Organization by Function