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Organizational Structures

Chain of command establishes how power and control are passed downward through an organization. A wide span of control indicates many subordinates, whereas a narrow one indicates fewer subordinates. Decentralization: enables local response to local changes in conditions, since local staff now has greater authority.

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196 views

Organizational Structures

Chain of command establishes how power and control are passed downward through an organization. A wide span of control indicates many subordinates, whereas a narrow one indicates fewer subordinates. Decentralization: enables local response to local changes in conditions, since local staff now has greater authority.

Uploaded by

farazdrums8748
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Organizational Structures

Chain of Command: establishes how power and control are passed downward through
an organization.
Tall structures indicate long chains of command. Decisions made at the top can take a
long time to reach those at the bottom, and there may be a feeling of remoteness
between those at the two ends. Spans of control are often narrow, and employees are
generally highly task specialized.
Flat structures are characterized by shorter chains of command.

Span of Control: the number of subordinates under the direct control of a manager. A
wide span of control indicates many subordinates, whereas a narrow one indicates fewer
subordinates.
The width of the span of control is determined by three main factors:
• Complexity of the work: simple tasks are associates with wide spans, and
complex/advanced tasks are associated with narrow spans.
• Staff skill: well trained staff need less attention, making a wider span of control
possible
• The manager’s own ability to manage a given number of staff
By widening the span:
• Delegation is encouraged, since the manager has less time for each subordinate
• There are fewer layers of hierarchy
• Staff may have more freedom
By narrowing the span:
• There is less pressure on employees
• Closer supervision is possible
• Staff may get more attention from managers
• Staff may have less freedom

Centralization: influences the authority to make decisions, and enables managers to


make decisions that will be consistent throughout the organization. This denied those
lower down the chain the authority to make their own decisions. Examples of centralized
decision making include McDonald’s and most multiple stores.
Decentralization: enables local response to local changes in conditions, since local staff
now has greater authority. There may be increased motivation among staff.

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