Key Topics
- Organizational Charts
- Delegation and Span of Control
- Delayering
- Levels of Hierarchy

Definitions
Accountability- Obligation of an individual, firm, or institution to account for its activities and disclose results

Authority-Institutionalized and legal power inherent in a particular job, function, or position

Bureacracy- Official administrative and formal rules of an organization

Centralized- Concentration of management and decision making power in a small group at the top of an organization's hierarchy

Chain of Command- formal line of authority which orders are passed down in an organization

Decentralized- Decision-making power and responsibility passed along others in the organization's heirarchy

Delayering- Reducing the size of a business hierarchy to create a flatter (less layered) organizational structure.

Delegation- Passing on of authority to a person lower in the organization's hierarchy

Downsizing- Intentional reduction in the size of a workforce to survive a downturn or improve efficiency

Responsibility- Duty or obligation to perform or complete a task in a satisfactory manner

Span of Control- Number of sub-ordinates under the manager's direct control

Formal Organization: Organizational Charts
*These organizational charts clearly show the kinds of job roles in a business and where they are typically located on the hierarchy of the business. This roles vary depending on the type of business but the placement should be relatively the same
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An Organizational Chart for a Business Should Look Something Like This
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Or This...



a solid screen cast made by one of our classmates, clear and concise.

Delegation and Span of Control
Delegation involves the passing on of control and authority to others. The managers empower them to complete the task but they are also accountable for the success of the task. The responsibility still remains with the manager.

Benefits of Delegation
- manager saves time allowing him to focus on a more important task
- motivates employees so they feel trusted and recognized
- improves communication between managers and employees
Problems with Delegation
- possibly leads to confusion and feelings of inadequacy
- demotivation of staff from failure in achieving task
- employees may not be adequately trained/have the proper skills to achieve task

SMARTER: Acronym Ensuring Proper Delegation
Specific: task must be clearly defined
Measurable: task must be assessable to how well the employee achieved the task
Agreed: task must be agreed upon by both the managers and employees
Realistic: task must be reasonably achievable
Time-bound: task must be set in a time-frame to finish
Ethical: task must be delegated fairly
Recorded: task should be documented

Span of Control
Wide Span of Control: manager has many subordinates who are accountable to him/her
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Narrow Span of Control: manager has few subordinates who are accountable to him/herimages-1.jpg

Levels of Hierarchy
Hierarchy structures can be flat or tall depending on the number of layers.
Flat organizations usually have a wide span of control and Tall organizations usually have a narrow span of control.

Flat Organizational Structure (Wide Span of Control)
- delegation becomes more important (to handle large numbers) granting opportunities for subordinates to take on responsibilities
- communication improved
- cheaper because of fewer levels requiring less managers
- prevents workforce from feeling alienated

Tall Organizational Structure (Narrow Span of Control)
- quicker communication between small teams
- smaller groups easier to control/manage
- greater specialization and division of labour
- greater opportunities for promotion

Delayering
3 main purposes for delayering
- reduce costs (i.e. salary)
- improves speed of
- encourages delegation as a result of wider span of control

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Disadvantages of Delayering
- anxiety and insecurity amongst workers (people worried about their position affecting motivation and productivity)
- workload for employees increase with less people (stress level and quality of work affected)
- decision-making is longer with larger teams
- workforce has to become more flexible due to workload increase (potential costs)

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