Unit 2.2 Organizational Structure

This occurs when an organization removes one or more layers in its hierarchical structure, i.e., the number of layers of management is reduced, or made flatter.

• Centralization

• Forecasting

• Decentralization

• Delayering

The transfer of information from one entity to another. It is vital to how a business operates.

Draw the the type of organizational structure that has few levels in the organizational hierarchy.

The act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project, or job role.

• Accountability

• Communication

• Delegation

• Centralization

Also known as a vertical structure, this type of organizational structure has many layers in the organizational hierarchy.

• Tall organization

• Flat organization

• Organic organization

• Virtual organization

The administrative systems within an organization, such as the formal policies and procedures of the business. It includes the formal rules, regulations, and procedures of the organization.

A form of flexible organizational structure that uses teams of employees with suitable skills and qualifications drawn from different departments or divisions of the business.

• Tall structure

• Functional structure

• Matrix organization

• Matrix structure

Also known as a horizontal structure, this type of organizational structure has only a few layers of management.

• Strong organization

• Tall organization

• Flat organization

• Matrix organization

Structuring a workforce according to different geographical areas based on where the firm's operations are.

• Organization by region

• Chain of command

• Organization by function

• Organization by product

Refers to a line manager’s level of concern in term of the people they are in charge of. An organization chart shows the breadth and depth of a person’s roles and responsibilities in the business.