3 - Organisational Structures Flashcards
Understand the effect of different organisational structures on how businesses operate
What is the difference between centralized and decentralized business?
In a centralized business the decision making is at the top of the hierarchy amongst the senior management whilst a decentralized business is where decision making is spread out amongst more managers in the hierarchy.
Who would you find at the top of an organisational structure?
Chief executive (CEO). The chief executive is the person with the most authority in the business.
What is a disadvantage of decentralized?
More costly because paying for more managers
What is a matrix structure?
Where organsisiations share functional areas
What is an advantage of a matrix structure?
Improves communication across the entire organisation
What is a flat organisational structure?
Few or no levels of management
What structure is Valley Park? (Tall, Flat or Matrix)
Tall
What is an advantage of a centralized business?
Quicker decision making
Is Valley Park a centralized or decentralized organisation
Centralized
Is Tesco a tall, flat or matrix organisation
Tall
