organisational structure

• Delegation


  Entrusting or passing on of certain responsibilities and tasks from managers to their subordinates
• Delegation


  • It is not a reward, it is natural and essential to all organizations
  • It is a win-win situation for managers and employees
• Span of control


  The number of subordinates that are directly accountable to their line manager
• Span of control

  • Wide span of control has fewer layers, lower managerial costs, effective communication, large teams but can be hard to control
  • Narrow span of control has more layers, increased administrative costs, prolonged communication but is easier to control and has higher chances of "us and them" culture
• Hierarchy


  An organizational system based on ranking, where people at the top have higher ranking and subordinates have lower ranking
• Hierarchy


  • Creates a sense of belonging, easy and clear to understand
  • Creates division between departments, makes the organization inflexible
• Chain of command


  A system by which orders are passed down in an organization, from top management to lower level subordinates
• Chain of command


  • The more levels in the hierarchy, the longer the chain of command, which can slow down decision implementation and responses from senior management
• Bureaucracy


  Execution of tasks guided by excessively complicated administrative rules and procedures, involving a lot of paperwork and formality
• Bureaucracy


  • Can hinder creativity and limit risk-taking, but may work well for certain types of organizations
• Centralization


  Decision making is in the hands of a small group of people or one person only
• Centralization


  • Allows for quick decisions, gives a sense of direction, easier to control, but can be demotivating and time-consuming for employees
• Decentralization


  Decision making is transferred and spread among many people or groups
• Decentralization


  • Motivates employees, but has higher administrative costs and is harder to control
• Delayering


  Removal of an entire management level in the hierarchy
• Delayering


  • Reduces administrative costs, shortens chain of command, increases delegation and empowerment, but can create insecurity and require more decision-making from lower levels
• Matrix structure


  A structure that combines a traditional hierarchy with project-based teams that cross departmental lines
• Matrix structures are common for project-based work where human resources are organized around projects rather than departments
• Organization charts are pictures that represent organizational structures, showing accountability (upwards) and responsibility (downwards)
• Organization charts


  • Can show functional departments, chain of command, span of control, communication channels, and levels of hierarchy
• Types of organization charts by height

  • Tall/vertical
  • Flat/horizontal
• Types of organization charts by purpose

  • By product
  • By region
  • By function
• Organization charts


  A picture that represents an organization's structure
• Types of organization charts

  • By height
  • By purpose
• Organization charts by height

  • Tall or vertical
  • Flat or horizontal
• Organization charts by purpose

  • By product
  • By region
  • By function
• Tall or vertical and flat or horizontal organization charts can be used interchangeably
• Us and them culture

  Subordinates and managers do not consider themselves part of the same team
• Us and them culture creates division within an organization
• Flat horizontal structures are more suitable for creative industries</b>
• Tall hierarchical structures are suitable for crisis management
• Matrix structure


  A complicated structure that depends on the situation
• One organization can use different types of structures and charts to organize its human resources