2.5 Organisational Structures Flashcards
Centralised organisation + Decentralised organisation definitions
Centralised organisation- Are when the decision making is done by exclusively the management of the business
Decentralised organisation- Decision making is delegated to staff. Meaning staff are given the responsibility to make decisions for themselves
Centralised organisation
Pros + Cons
Pros- -Fast execution of jobs -More control over employees Cons- -Hard for employees to work up the business -Lack of authority may reduce motivation
What is an organisational structure?
An organisational structure is the way a business arranges its departments. The roles of the employees within the business are shown on its organisational chart.
What is a tall/hierarchical structure?
- Used in very large businesses
- Has many managers/layers of hierarchy
- Has a long chain of command
- Managers have a narrow span of control
- Employees at the bottom are not involved in decisions
- Top managers pass on responsibility to junior managers
- Opportunity for promotion
- Communication takes long time to go from staff to top managers
What is a flat structure?
- Used in smaller business
- Has less managers/layers of hierarchy
- Has a short chain of command
- Managers have a wide span of control
- Fewer opportunities for promotion
- Communication takes a short time to go from staff to senior managers
- Quality of communication may be poor
Advantages of tall structure?
- Communication is quicker from mangers to staff
- Decisions are made faster as staff are not involved
- Opportunities for promotion
- Learn new skills from delegation
Disadvantages of tall structure?
- Demotivated staff as they are not involved in decision making
- Information takes a longer time to reach top managers
- Managers have most control over decisions
Advantages of flat structure?
- Communication is quicker from managers to staff
- Decisions take longer to make as staff help
- Staff complete a wide range of skills
Disadvantages of flat disadvantages?
- Demotivated staff a there is few promotion opportunities
- Not suitable for large organisations
Benefits of wide span of control?
- More independence
- Cheaper-less managers
Benefits of narrow span of control
- Closer supervision
- More layers in the structure
- More effective communication
- More policies
