Organizational Structure and Human Resources

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Organizational structure

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The hierarchy of an organization that sets forth the chain of command. Depends upon the goals of the organization. Illustrated by an organization chart. Can be centralized or decentralized.

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Human resources management

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All the activities associated with personnel, such as hiring, recruiting, compensation, performance evaluation, employee relations, health and safety.

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Centralized decision-making

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Decision-making rests with upper management.

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Decentralized decision-making

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Decision-making is the responsibility of departments or divisions.

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Span of control

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The number of subordinates over which a member of management has direct control. Displayed in an organizational chart.

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Large span of control

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Typically for routine tasks that do not necessarily require as much managerial input.

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Small span of control

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Can result in micromanaging or too much managerial input.

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4 main types of organizational structure

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Line, Line-and-Staff, Matrix, Team.

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Line organizational structure

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Oldest and simplest form of organization. Quicker decisions due to top-to-bottom chain of command. Lack of specialization.

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Line and staff organizational structure

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More complex than line organization. Allows for experts at different levels. Specialization. Costlier than line organization.