What's it: Downsizing is a company's strategy to reduce the size and complexity within their organization. It involves reducing employees making the company smaller by laying them off. Companies may delete job titles or eliminate overlapping
Organizational Structure Terms
Delayering: Importance, How it Works, Strengths, Disadvantages
What's it: Delayering means removing a management layer, often targeted at those between the top and bottom layers. In other words, the target is middle management. As a result, the organizational structure becomes flatter with shorter
Bureaucracy: Importance, How it Works, Advantages, Disadvantages
What's it: Bureaucracy is an organizational arrangement based on a legal and formal authority system, run by following strict and impersonal rules. Companies typically have multiple layers with a clearly defined chain of command. Management
Centralization: Importance, How it Works, Determinants, Pros, Cons
What's it: Centralization is a hierarchical decision-making structure in which company executives retain authority and have full control over decision-making. It contrasts to decentralization, where upper management delegates it to lower levels
Authority: How It Works, Sources, Types, Examples
What's it: Authority is legitimate power, given by the rules and recognized by other parties. It allows one to demand action and expect obedience from others. For example, suppose a company gives a manager authority. In that case, it gives him
Accountability: Importance, Examples, Components
What's it: Accountability means carrying out roles and duties responsibly as they should. It can apply to other individuals, departments, companies, or organizations. And let's focus on its application in enterprise management. When an
Span of Control: Importance, Types, Advantages, Disadvantages
What's it: The span of control shows how many subordinates a manager is responsible for. When managers or supervisors have many subordinates, we call it a wide span of control. On the other side, if they have fewer subordinates, we call it a
Organizational Chart: Importance, Features, and Types
What's it: An organizational chart is a graphical representation of an organizational structure. It describes the units and positions within the company. In the diagram, we can see the roles, responsibilities, and relationships between positions
Levels of Hierarchy: Definition and Brief Explanation
What's it: Levels of hierarchy refer to the various levels within the organizational structure at which authority and responsibility are attached. Higher levels have higher authority and decision-making power. In addition, they are responsible