also known as management ratio, refers to the number subordinates controlled directly by a superior
Levels of Hierarchy
A hierarchy refers to the levels of management in any business, from highest to lowest. Those on a higher level have more decision-making power and control than employees who occupy a lower level in the hierarchy. Lower level workers take direction from higher level employees
Chain of Command
The order in which authority and power in an organization is wielded and delegated from top management to every employee at every level of the organization.
Bureaucracy
A system of administration distinguished by its clear hierarchy of authority, rigid divisions of labor, written and inflexible rules, regulations, and procedures, and impersonal relationships
Centralization
The Location of all or most main departments and managers at one facility
De-Layering
To reduce the size of a business hierarchy, especially in terms of a reduction in management
Organization Charts
Visual representation of how a firm expresses authority, responsibility, and information to flow within its formal organizational structure
Flat/Horizontal organizations
Flat structures have fewer management levels, with each level controlling a broad area or group. Flat organizations focus on empowering employees rather than adhering to the chain of command
Tall/Vertical Organizations
The pros of tall structures lie in clarity and managerial control. The narrow span of control allows for close supervision of employees. Tall structures provide a clear, distinct layers with obvious lines of responsibility and control and a clear promotion structure
Hierarchal organizations
A hierarchical organization follows the layout of a pyramid. Every employee in the organization, except one, usually the CEO, is subordinate to someone else within the organization
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