Mind map
1) Types of organisational structure
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1) Types of organisational structure
Tall Structure
- - Has many levels of management. - There is a long chain of command running from the top of the organisation.
- Advantages
- Narrow span of control which means managers have a small number of employees under their control (close supervision)
- Clear progression and promotion ladder.
- The function of each layer will be clear and distinct. Clear lines of responsibility and control
- Disadvantages
- The freedom of responsibility of employees is restricted.
- Decision making could be slowed as approval may be needed from each level.
- High management costs because managers are generally paid more than subordinates.
Flat Structure
- Relatively few layers of management. Chain of command is shorter and span of control is wider.
- Advantages
- Greater communication between managers and subordinates
- Better team spirit as fewer management layers increase interaction between employees at all layers.
- Less bureaucracy and easier decision making.
- Fewer layers reduces costs.
- Disadvantages
- Employees may have more than one manager as there are a number of managers at one level.
- May hinder growth of the organisation, especially is managers have wide span of control.
- Structure limited to small organisations
- Lack of layers reduces promotion opportunities
Matrix Structure
- Contains teams of people created from various sections of the business. Each team will have a specific purpose and be led by a project manager. Matrix structure usually deployed to develop products and services.
- Advantages
- Individuals can be chosen according to the need of the project.
- A project manager is directly responsible within a specific deadline & budget.
- Disadvantages
- If teams have a lot of freedom it can be difficult to monitor.
Centralisation
- Decision making is taken by senior management at the top of the business.
- The use of standardised procedures can result in cost savings.
- Decision making can be made for the benefit of the whole organisation rather than the benefit of one department.
Decentralisation
- decision-making is spread out to include more junior managers in the hierarchy
- Senior management will have time to focus on more important decisions.
- Decision making is a form of empowerment.
- People lower down will gain greater understanding of te environment they work in and this knowledge will make them more effective.
Information
- Description
- Applied Business Unit 12 Unit 1: Organisational Structures
- Created by
- charlottedobson3 · Feb 2015
- Updated
- Nov 21, 2018
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- 127
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