The line of authority that moves from the top of a hierarchy to the lowest level is called the

Q: Is a system in which one person is at the top of the organization and there is a ranked or sequential ordering of employees from the top down?

CardsTerm Define: Division of Labor

Organisational structures define a hierarchy within an organisation. The two most common arrangements include:

Inhaltsverzeichnis Show

How does a hierarchical organisational structure work?
What are the advantages of a hierarchical structure?
What are the disadvantages of a hierarchical organisational structure?
Is a system in which one person is at the top of the organization and there is a ranked or sequential ordering of employees from the top down?
What is hierarchy authority quizlet?
In what organization decision
Is the structure that details lines of responsibility authority and position?

a flat organisational structure
a hierarchical organisational structure

Each structure has its advantages and disadvantages. The most appropriate arrangement will depend on the size and the type of your business, and the number of management levels that you need. See reasons for changing your organisational structure.

How does a hierarchical organisational structure work?

A hierarchical structure is typical for larger businesses and organisations. It relies on having different levels of authority with a chain of command connecting multiple management levels within the organisation.

The decision-making process is typically formal and flows from the top down. This creates a tall organisational structure where each level of management has clear lines of responsibility and control. As the organisation grows, the number of levels increases and the structure grows taller.

Often, the number of managers in each level gives the organisation the resemblance of a pyramid. This structure gets wider as you move down - usually with one chief executive at the top, followed by senior management, middle managers and finally workers. Employees' roles are clearly defined within the organisation, as is the nature of their relationship with other employees.

What are the advantages of a hierarchical structure?

A hierarchical structure can provide benefits to businesses. For example, it can help establish:

clear lines of authority and reporting within the business
a clearer understanding of employee roles and responsibilities
accountability for actions or decisions at different management levels
clear career paths and development prospects which can motivate employees
opportunities for employees to specialise and develop expertise in their field
close supervision of employees through a narrow span of managerial control
a culture of loyalty towards teams, departments and organisation as a whole

What are the disadvantages of a hierarchical organisational structure?

Workplace hierarchies are not always effective. Common disadvantages of hierarchical structures include:

complicated chains of command which can slow down decision-making
inconsistencies in management at different levels which can impede work
delays in communicating vertically through the levels and horizontally between teams
less flexibility to adapt and react to environmental and market pressures
disconnect of employees from top-level management
a strain on the employee-manager relationship due to lack of autonomy
difficulties collaborating outside of the team 'silo' or dealing with team rivalry
considerable amount of corporate overhead to support the many management layers

Generally, tall organisations are very complex. Strategies should be in place to deal with the challenges that are likely to occur under this structure. This could include creating a decentralised organisational structure - one in which senior management assigns the authority for limited decision-making to lower levels in the organisation.

For some businesses, a tall organisational structure will not be appropriate at all. Find out more about the flat organisational structure.

If you decide to change your organisational structure, make sure that you manage the process correctly. See best practices in change management.

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Question	Answer
Organizing	Structuring, begins with determining what work needs to be done
Job specialization	Dividing raises into smaller jobs. Helps increase efficiency
Division of labor	Dividing up the tasks among the three of you
Departmentalizations	The process of setting up individual departments to do specialized tasks
Three steps to structuring an organization	1) devising a division of labor 2) setting up teams or departments to do specific tasks 3) assigning responsibility and authority to people
What does an organization chart show?	The relationships among people
Two changes organizations have to adapt to	Evolving business environment Change in customer expectations
Bureaucracy	Reliance on rules; an organization with many layers of managers who set rules and regulations and oversee all decisions
Mass production	Methods for efficiently producing large quantities of goods
Economies of scale	The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase
Henri Fayols book - French? American?	Administration industrielle et generale General and industrial management
Unity of command	Each worker is to report to one and only one boss
Hierarchy of authority	All workers should know to whom they report. Managers should have the right to give orders and expect others to follow
Division of labor	Functions are to be divided into areas of specialization such as production marketing and finances
Subordination of individual interests to the general interest	Workers are to think of themselves as a coordinated team
Authority	Managers have the right to give orders and the power to enforce obedience. Authority and responsibility are related
Degree of centralization	The amount of decision-making power vested in top management should vary by circumstances
Clear communication channels	All workers should be able to reach others in the firm quickly and easily
Order	Materials and people should be placed and maintained in the proper location
Equity	A manger should treat employees and peers with respect and justice
Esprit de corps	A spirit of pride and loyalty should be created among people in the firm
Fayols principles	Unity of command Hierarchy of authority Division of labor Subordination of individual interests to the general interest Authority Degree of centralization Clear communication channels Order Equity Esprit de corps
Hierarchy	A system in which one person is at the top of the organization and there is ranked or sequential ordering from the top down of managers who are responsible to that person
Max Weber’s book	The theory of social and economic organizations
Weber promotes what type of organizational structure	Pyramid -shaped organizational structure
What type of employees does Weber’s belief work with and why?	Employees that are relatively and uneducated and untrained workers because he believed that employees should simply do what they were told. The less decision making they had to do the better
Weber emphasized	Job descriptions Written rules, decision guidelines, and detailed records Consistent procedures, regulations, and policies Staffing and promotion based on qualifications
Disadvantage of rules and procedures	Became rigid and grew counterproductive
Chain of command	Line of authority that moves from the top of a hierarchy to the lowest level
Organization chart	Visual device that shows relationships among people and divides the organizations work; it shows who reports to whom
Bureaucrat	Middle manger who’s function was to implement top managements orders
Four factors to decide when designing an organization	1) centralization versus decentralization 2) span of control 3) tall versus flat organizational structure 4) departmentalization
Centralized authority	Occurs when decision making is concentrated at the top level of management
Decentralized authority	Occurs when decision making is delegated to lower levels mangers and employees more familiar with local conditions than headquarters management could be
Advantages of centralized authority	Greater top management control More efficiency Simpler distribution system Stronger brand/corporate image
Advantages of decentralized authority	Better adaptation to customer wants More empowerment of workers Faster decision making higher morale
Disadvantages of centralized authority	Less responsiveness to customer Less empowerment Inter organizational conflict Lower morale away from headquarters
Disadvantages of decentralized authority	Less efficiency Complex distribution system Less top management control Weakened corporate image
Span of control	The optimum number of subordinates a manger supervises or should supervise
What is the right span of control	At lower levels - broad (15-40 workers). The appropriate span gradually narrows at higher levels of organization because work becomes less standardized and mangers need more face to face communication
The trend today of span of control a	Expand As organizations adopt empowerment, reduce the number of middle managers and hire more talented and better educated lower level employees
Tall organizational structure	An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
Disadvantages of tall structure	Messages distorted Cost of managers and support people Enormous amount of paperwork Inefficiencies in communication and decision making
Departmentalization	Divides organizations into separate units. Traditional way is by function- design production marketing and accounting
Advantages of departmentalization	1) employees can develop skills in depth and progress within a department as they master more skills 2) the company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area 3) employees can coordi
Disadvantages of departmentalizations	Departments may not communicate well Employees may identify with their departments goals rather than the organization The company’s response to external changes may be slow People may not be trained to take different managerial responsibilities Depart
Flat organizational structure	An organizational structure that has few layers of management and a broad span of control
Five ways a firm can departmentalize	Product Customer group Geographic region Process Hybrid
Advantages of broad span of control	Reduced costs More responsiveness to customers Faster decision making More empowerment
Advantages of narrow span of control	More control by top management More chances for advancement Greater specialization Closer supervision
Disadvantages of broad span of control	Fewer chances for advancement Overworked managers Loss of control Less management expertise
Disadvantages of narrow span of control	Less empowerment Higher costs Delayed decision making Less responsiveness to customers
Four ways to structure an organization	Line organization Line and staff organizations Matrix style organizations Cross functional self managed teams
Line organization	An organization that has direct two way lines of responsibility authority and communication running from top to the bottom of the organization with all people reporting to only one supervisor Common in small businesses No specialist support staff Follo
Line personnel	Employees who are part of the chain of command that is responsible for achieving organizational goals
Staff personnel	Employees who advise and assist line personnel in meeting their goals
Matrix organization	An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure
Which industry developed the matrix organization	Aerospace
Advantages of matrix system	Gives managers flexibility in assigning people to projects It encourages inter organizational cooperation and teamwork Produces creative solutions to product development problems Makes efficient use of organizational resources
Disadvantages of matrix system	Costly and complex Can confuse employees about where their loyalty belongs Requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems May be a temporary solution to a long term problem
Cross functional self managed teams	Groups of employees from different departments who work together on a long term basis
What management principle does a matrix style organization challenge	That people can work for only one boss
What is the main difference between a matrix style organizations structure and the use of cross functional teams	Cross functional teams are long term while matrix style is temporary
Networking	Using communications technology and other means to link organizations and allow them to work together on common objectives
Real time	The present moment or the actual time in which something takes place
Virtual corporation	A temporary networked organization made up of replaceable firms that join and leave as needed
Benchmarking	Comparing an organizations practices, processes and products against the worlds best
Core competencies	Those functions that the organization can do as well as or better than any other organization in the world
Digital natives	Young people who have grown up using the internet and social networking
Companies most successful to adapting to change have what traits	They listen to customers They have inspirational managers who drive new ideas through out the organizations They often have had a close call with going out of business
Restructuring	Redesigning an organization so that it can more effectively and efficiently serve its customers
Inverted organization	An organization that has contract people at the top and the chief executive officer at the bottom of the organizational chart
What type of employees must be involved for an inverted organization?	Better educated better trained and better paid
Organizational (or corporate) culture	Widely shared values within an organization that provide unity and cooperation to achieve common goals
Formal organization	The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts
Informal organization	The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the firms organization; that is, the human side of the organization that does not appear on any organization chart
Nerve center of informal organization.	Grapevine

Is a system in which one person is at the top of the organization and there is a ranked or sequential ordering of employees from the top down?

Cards

Term Define: Division of Labor	Definition Assigning task to the person best suited for the job
Term Define: hierarchy	Definition A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

Understanding Business Ch. 8 Flashcardswww.flashcardmachine.com › understanding-businessch8null

What is hierarchy authority quizlet?

The levels of management within a business organization, from the lowest to the highest. Departmentalization.

In what organization decision

Centralization. Centralization is the degree to which decision-making authority is concentrated at higher levels in an organization.

Is the structure that details lines of responsibility authority and position?

The framework for organizing the formal relationships of responsibility, authority, and accountability is known as the organizational structure. There are a number of variations of organizational structure, including line, line and staff, and committee.

The line of authority that moves from the top of a hierarchy to the lowest level is called the

How does a hierarchical organisational structure work?

What are the advantages of a hierarchical structure?

What are the disadvantages of a hierarchical organisational structure?

Is a system in which one person is at the top of the organization and there is a ranked or sequential ordering of employees from the top down?

What is hierarchy authority quizlet?

In what organization decision

Is the structure that details lines of responsibility authority and position?

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