2.5.1 Organisational Structure Flashcards
Organisational structure
Shows how employees are organised within a business
Span of Control
The people someone line managers
Subordinate
The person below you in the organisational structure
Tall Structure
4+ levels in the structure
Advantages of a tall structure
Narrower spans of control
Lots of promotional opportunities
Staff can clearly see how their role fits within the organisation structure
More organised
Disadvantages of a tall structure
Higher costs due to more levels
Slower communication due to long chain of command
Messages can be distorted
Decision making can be slower
Flat structure
3 or Less layers within an organisation
Advantages of Flat structure
Faster communication
Less chance of message disortion
Faster chain of command due to less layers
Faster decision making due to smaller chain of command
Creativity as more work delegated
Disadvantages of Flat structure
Greater rivalry for promotion
Less organisation
Less promotional opportunities as less layers
Wider spans of control
Mistakes due to unclear communication lines
Delayering
The process of removing one of the levels within an organisation’s hierarchy - usually a management level
Advantages of delayering
Reduced costs
Increased speed of communication
Quicker Decision making
Empowers employees further down hierarchy
Disadvantages of delayering
Creates wider spans of control
Loss of experience and expertise
Increased workload for remaining staff