Passing on of control and authority to others
Span of control
The number of subordinates that are controlled by a manager
Ex. The number of people who are directly accountable to a manager
Levels of hierarchy
The organizational structure based on a ranking system
Ex. CEO, chairperson, board of directors
Have fewer levels in the hierarchy
Ex. Each manager tens to have a wider span of control
Have many layers in the organizational hierarchy
Ex. Each manager tend to have a narrower span of control
Chain of command
The formal line of authority through which orders are passed down in an organization
Power that is delegated formally which includes a right to command a situation, commit resources, give orders and expect them to be obeyed, it is always accompanied by an equal responsibility for one's actions or a failure to act.
Duty or obligation to satisfactorily perform or complete a task that one must fulfill, and which has a consequent penalty for failure.
Management concept of giving employees the skills, resources, authority and opportunity, as well as holding them responsible and accountable for the outcomes so that they can take initiative in decision making, company uses this tactic to improve service and performance.
The execution of tasks that are governed by official administrative and formal rules of an organization
The process of removing one or more levels in the hierarchy in order to flatten out the organizational structure
Reduces the # of layers of management & widens span of control
The size of the core workforce is reduced
1. Concentration of management and decision making power at the top of an organization's hierarchy.
2. Location of all or most main departments and managers at one facility.
when decision making is largely dispersed to outlying bits/subunits of the organization
The extent to which a person is held responsible for the success or failure of a task
1. a type of management system in which workers report to more than one person
2. a situation where individuals work across teams and projects
Network of personal and social relationships (alliances, cliques, friendships) that arise among people in a work environment
Contracting or 'externalizing' non-core activities to free up cash, personnel, time, and facilities when companies want to downsize or reengineer. Firms having strengths in other areas may contract-out other aspects of their businesses to concentrate on what they do best and thus reduce average unit cost.
the relocation by a company of a business process from one country to another