2.4 - Ways Businesses Structure the Working Environment Flashcards
What are the 4 types of structures businesses can adapt?
The 4 types of structures are:
1. Hierarchical structure
2. Flatter structure
3. Network structure
4. Matrix structure
What is the purpose of a ‘Hierarchical Structure?’
Large businesses tend to use a ‘Hierarchical Structure’ to have a clearly defined span of control.
What are the features of a ‘Hierarchical Structure?’
Features of a ‘Hierarchical Structure:’
- Employees are arranged into levels from senior management
- Positions, roles and responsibilities are clearly identifiable
- Centralized decision making (most decisions are made by senior management)
What is the purpose of a ‘Flatter Structure?’
Smaller businesses tend to us the “Flatter Structure.’ It involves employees in the decision-making phase, not just the senior management roles.
What are the features of a ‘Flatter Structure?’
Features of a ‘Flatter Structure:’
- Improved communication due to fewer layers of staff
- Increased use of employee knowledge, skills and experience
- Workers feel greater levels of empowerment and motivation
What is the purpose of a ‘Network Structure?’
A ‘Network Structure’ comprises of organizations combining to produce a good or service. It flexible and can adapt to changes in consumer demand and choices.
What is the main feature of a ‘Network Structure?’
A ‘Network Structure’ has its functions outsourced (i.e. outside the company).
What is the purpose of a ‘Matrix Structure?’
A combination of two or more organizational structures, a ‘Matrix Structure’ is often used when businesses are undertaking a project or an assignment.
What are the features of a ‘Matrix Structure?’
Features of a ‘Matrix Structure:’
- Forms a team of specialist from different areas (e.g. marketing, finance)
- Improve communications channels
- Interdepartmental rivalries are reduced
- Increased number of innovations
