1.4.3 Organisational Structure Flashcards
Describe what a hierarchy means
- Refers to the level of authority within an organisation
- Usually includes higher level management, middle level management and lower level employees
Explain what a chain of command means
- Formal line of authority which flows down from the high level management to lower level employees
Explain what span of control means
- The number of staff who are answerable directly to a manager
What does a narrow span of control mean?
- More layers of management
What does a wider span of control mean ?
- Fewer layers of management
What is known as a centralised structure ?
- Where decision making authority is mainly concentrated at the top of the business
What is meant by a decentralised structure
- Decision making authority is distributed throughout the organisation, with lower level employees also given decision making power
What can decentralisation promote ?
-Flexibility and innovation whilst centralisation promotes consistency and control
What are three types of organisation structure ?
Tall, Flat , Matrix
Explain a tall organisational structure
- Multiple layers of management
- Narrow span of control and long chain of command
What are some advantages of a tall structure
- Offers opportunities for career promotion
- Communication may be excellent within an immediate team.
- Allows close management supervision which is vital if staff are getting trained or new.
What are some disadvantages of tall structures
- Decision making may be slow as it must feed through multiple layers of management
- Workers may feel over supervised and therefore not trusted, may cause them to leave.
Explain a flat organisational structure
- Fewer layers of management and wider span of control
- Short chain of command
What are some advantages of a flat organisational structure
- Decision making can be more fast and efficient due to short chain of command.
- Encourages innovation and creativity as employees have more flexibility
What are some disadvantages of a flat organisational structure ?
- May not provide clear opportunities for career advancement and promotion
- Wide span of control may lead to staff taking on more responsibilities which may make them feel overwhelmed and burnt out