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Levels in Organizations:

Tall/Narrow and Wide/Flat Organizations:


Tall (narrow) structure: Has many levels with small spans of management
-power is centralized on the top levels and there is more employee control
Advantages:
 Greater control
 Better performance
Flat (wide) structure: Has small number of levels and broad span of management at each level.
Manager must be able to delegate well
Advantages: Great job satisfaction
 More delegation
 Increased communication between levels of management.

Centralization and decentralization:


Centralization of authority means the power of planning and decision making
are exclusively in the hands of top management while in the case
of Decentralization, the powers for the same has been disseminated by the top
management to the middle or low-level management.

Formal and Informal Organization:


Formal Structure

 Formal structure is primarily concerned with the relationship between authority and
subordinate.
 A typical organization chart illustrates the formal structure at work in a company or part
of a company.
 The hierarchical organization begins at the top with the most senior leader and then
cascades down to the subordinate managers and then subordinate employees below those
managers.
 There are job titles, financial obligations and clear lines of authority for each box on the
organization chart.

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