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Unit 5: Organizing

5.5 Organizational Charts Notes

Traditional Nonprofit Organizational Structure

Board of
Directors

Fund raising Budget and Nominating Other: Ad Hoc or
Committee Finance Committee Committee Program Committees

-C.E.O.-
Executive Director
(or President)

-C.F.O.- -C.O.O.- Asst. Director -C.O.O.- Asst. Director
Asst. Director Asst. Director Asst. Director Planning/ Asst. Director Human
Development
(or Vice Finance Operation Marketing PR/Community Resources
President) (or Vice (or Vice (or Vice Affairs (or Vice (or Vice
President) President) President) President) President)

5.6 Authority and its Decentralization Quality Circles and Matrix

Structures

Decentralization or decentralisation is the process of dispersing decision-making governance
closer to the people and/or citizens. It includes the dispersal of administration or governance
in sectors or areas like engineering, management science, political science, political economy,
sociology and economics. Decentralization is also possible in the dispersal of population and
employment. Law, science and technological advancements lead to highly decentralized human
endeavours.
A central theme in decentralization is the difference between:
• A hierarchy, based on authority: Two players in an unequal-power relationship; and
• An interface: A lateral relationship between two players of roughly equal power.

The more decentralized a system is, the more it relies on lateral relationships, and the less it
can rely on command or force. In most branches of engineering and economics, decentralization
is narrowly defined as the study of markets and interfaces between parts of a system. This is
most highly developed as general systems theory and neoclassical political economy.

Organizational Theory

Decentralization is the policy of delegating decision-making authority down to the lower
levels in an organization, relatively away from and lower in a central authority. A decentralized
organization shows fewer tiers in the organizational structure, wider span of control, and a
bottom-to-top flow of decision-making and flow of ideas.

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