Organisational Structure Terminology

Which term describes refers to the official rights of a line manager to give orders and instructions to his/her subordinates in the organization to get things done?

Answer explanation

Authority refers to the official rights of a line manager in an organization to give orders and instructions to his/her subordinates to get things done.

What term refers to administrative systems within an organization?

Answer explanation

Bureaucracy refers to administrative systems (formal processes and policies, including paperwork) within an organization. This includes the formal policies and procedures of the business.

Which term refers to the situation in organizations where decision-making is predominantly made by a small group of senior managers at the top of the organizational hierarchy?

• Centralization

• Decentralization

• Delegation

• De-layering

Answer explanation

Centralization refers to the situation in organizations where decision-making is predominantly made by a small group of senior managers at the top of the organizational hierarchy, i.e. decision-making power is centralized in the hands of a few (senior executives).

Which term refers to the formal lines of authority in an organization?

• Delegation

• Hierarchical structures

• Organizational structure

• Chain of command

Answer explanation

The chain of command refers to the formal lines of authority in an organization, as illustrated in an organizational chart.

Which term refers to the situation in organizations where decision-making authority is delegated throughout the firm?

• De-layering

• Flat structure

• Responsibility

• Decentralization

Answer explanation

Decentralization refers to the situation in organizations where decision-making authority is delegated throughout, rather from a central authoritative group.

What occurs when an organization removes one or more layers in its hierarchical structure?

• Decentralization

• De-layering

• Delegation

• Demarcation

Answer explanation

De-layering occurs when an organization removes one or more layers in its hierarchical structure, i.e. it reduces the number of layers of management to make it flatter.

What is the term for when a line manager entrusts and empowers a subordinate with authority to successfully complete a particular task?

Answer explanation

Delegation occurs when a line manager entrusts and empowers a subordinate with authority to successfully complete a particular task, project or role.

What term refers to an organization with only a few levels in the organizational structure?

Answer explanation

A flat structure has few levels in the organizational hierarchy.

Which term is used to show where each worker fits within an organization?

• Hierarchical structures

• Delegation

• Accountability

• Responsibility

Answer explanation

Hierarchical structures in an organization show where each worker fits within the firm, showing his/her level of seniority.

Which term refers to the number of layers of formal authority in an organization?

• Delegation

• Levels of hierarchy

• Organizational chart

• Empowerment

Answer explanation

Levels of hierarchy refers to the number of layers of formal authority. It is represented in an organizational chart.