Attrition is the normal and uncontrollable reduction of a workforce due to retirement, death, sickness, and relocation. It provides a natural way for organizations to reduce their workforce without taking overt management actions, though it can lead to unpredictability and gaps.
Authority delegitimizes effective functioning within organizations and public bodies, easing decision-making and enforcement of rules and regulations.
BRASS refers to the top management of an organization, originating from military terminology. It's often used by individuals not in top management to describe a broad area of responsibility without a fixed point of reference.
Centralization refers to the process or situation where decision-making authority is concentrated within the upper echelons of an organization, as opposed to being distributed among lower-level managers.
A committee is a group of people appointed for a specific function or task, usually with the goal of making decisions or recommendations. Committees exist in various contexts, such as corporate, governmental, academic, and nonprofit organizations.
A cost center is a non-revenue-producing segment of an organization where costs are separately figured and allocated, and for which someone has formal responsibility. Common examples include departments like Human Resources (HR) and IT services.
The delegation of decision-making responsibilities to the subunits of an organization. The advantages claimed for decentralization are that local managers are more aware of immediate problems, are better motivated, and have greater control over local circumstances. The disadvantages are the possibility of wasteful competition between subunits, duplication of services, and the loss of central control and access to information.
A discrete section of an organization under the responsibility of a department manager; separate costs and, where appropriate, income are allocated or apportioned to the department for the purposes of costing, performance appraisal, and control.
Departmentalization is the process of forming employees into groups to accomplish specific organizational goals. It can be organized based on the functions performed, products offered, type of customer, or geographic divisions.
A part of an organization, usually an investment center or profit center which, although ultimately responsible to head office, enjoys a degree of autonomy in terms of decisions.
In organizational and military contexts, 'echelon' refers to a level of activity with specific responsibilities or a subdivision of a military force.
A firewall in a conglomerate is a strategic barrier designed to segregate the organization, funding, and ownership of different business entities within the group, ensuring that challenges faced by one entity do not adversely affect others.
Supervisors on an organizational level immediately above non-managerial workers. First-line managers primarily oversee performance on line tasks. Some typical titles associated with supervisory positions are foreman, shift boss, sergeant, section head, and ward nurse.
A structure of an organization based on functional performance; organizational departments created to fulfill organizational functions such as marketing, finance, and personnel. This type of organization has characteristics of both line and staff functions.
A divisional unit within an organization structured on the basis of its operational location, allowing for localized decision-making and management.
A hierarchy is a system where entities are ranked according to levels of importance, authority, or priority within an organization or a structure, often depicted as a pyramid. The CEO stands at the top in a corporate management hierarchy.
Horizontal specialization is an organizational process through which a single management function, such as recruiting, is divided among one or more subordinates. Also known as functional management, horizontal specialization commonly occurs due to an organization's growth requiring additional management coordination and control.
Inferred Authority is a type of authority assumed by an individual when a higher authority leaves their post, often exercised due to inferred abilities or circumstances requiring immediate leadership.
Aspects of an organization that are undefined in the formal structure, including human relationships, actual power versus formal power, communication, and social networks.
Line and staff organization delineates the organizational authority between management personnel (staff) with planning and direction responsibilities and operational personnel (line) with direct job performance responsibilities. The staff functions in an advisory capacity to the line function.
Line authority refers to the power granted to supervisors or managers over their subordinates within an organization. This authority enables direct control over important operations and decision-making processes.
Line function refers to activities or roles that directly contribute to the primary output of an organization. In service organizations, line functions typically encompass areas like operations and sales.
An organizational structure where direct line functions contribute to the organization's output. This setup ensures clear lines of authority, accountability, and streamlined decision-making, focusing on direct communication from top management to entry-level employees.
The Management Ratio refers to the ratio of management personnel to 1,000 employees, further broken down into the ratio of top management and middle management personnel per 1,000 employees. It's a critical measurement for evaluating organizational structure and management efficiency.
Matrix organization involves superimposing a group or interdisciplinary team of project specialists, such as scientific and engineering personnel, onto a functional organizational design. Members in a matrix organization hold dual allegiance, both to the project they are assigned and their original departmental hierarchy.
Middle management refers to managers with full management responsibilities who report to higher-level managers. They serve as a bridge between the upper management and operational staff within an organization.
Top management integrating lower and middle level managers in the planning and administration of corporate affairs.
Operational control refers to the power of management over the daily activities of a business, guiding its day-to-day operations, resources, and performance.
Organizational Chart illustrates the interrelationships of positions within an organization in terms of authority and responsibility. It categorizes the organization into line organization, functional organization, and line and staff organization.
Organizational structure is the systematic way responsibility and authority are apportioned among the members of an organization. This concept is crucial for ensuring effective coordination and achieving organizational goals efficiently. Common types of organizational structure include functional organization, matrix organization, and line organization.
Personnel refers to the people who actually compose an organization's workforce. In other words, it is synonymous with Human Resources (HR) and entails the management and development of employees within an organization.
A method of dividing the productive procedures in a manufacturing organization into organizational segments to optimize efficiency and specialization.
A Professional Association (P.A.) is a legal entity that allows professionals to practice within the framework of a designated organizational structure while benefiting from certain protections and tax advantages.
A section or area of an organization to which revenue can be traced, together with the appropriate costs, so that profits can be ascribed to that area. Profit centres may be divisions, subsidiaries, or departments.
A responsibility centre is a designated section within an organization where costs and income are tracked and assigned to a specific manager. This assignment ensures accountability and efficient financial management.
Span of Control refers to the principle of management stating the number of people a manager can supervise effectively. The ability to supervise people depends on various factors including the nature of the job, the professional level of employees, and their geographical location.
Splintered authority refers to the division of authority among many managers, resulting in a manager having to deal with several other managers before decisions can be finalized.
Staff Authority refers to the power to advise but not direct other managers, mainly found in administrative and support functions within an organization.
A task group is a collaborative team operating within a larger organizational context, assigned the mission to contribute specifically to the goals of the parent organization. These groups can be either ongoing or temporary.
A governance structure utilized by some large organizations, involving both a board of management and a supervisory board, designed to enhance corporate governance.
The principle of Unity of Command in management states that each subordinate should report to only one superior to avoid confusion and conflict.
A detailed exploration of the hierarchical structure and functioning of an organization characterized by layers of management delegation of authority.
A hierarchically structured organization where all management activities are controlled by a centralized management staff, often leading to strong bureaucratic control.
Vertical specialization refers to the delegation of responsibilities and duties to others within the same line of authority in an organization. This happens as organizations grow more complex, necessitating the involvement of additional personnel to manage increasing workloads.
A vice-president (VP) is a corporate officer subordinate to the president, typically responsible for a specific functional area such as marketing, production, finance, or human resources.
