3.1 Different Organisational Structures Flashcards
What is tall level of hierarchy ?
Tall organisations have many levels of hierarchy
Span of control is narrow and there are opportunities for promotions
Junior staffs have little authority and independence at work
Lines of communications are long, making them he firm unresponsive to change
What is flat level of hierarchy ?
They have fewer levels of hierarchy
Lines of communication are short, making the firm responsive to change
A wide span of control means tasks must be delegated and manages can feel overstretched.
Junior staffs are given more authority
What is the matrix structure ?
Individuals work across teams and projects as well as within their own department or function.
E.g. a project team is established to develop a new product and might include engineers and design specialists as well as those with marketing
These teams can be temporary or permanent
Advantages of matrix structure ?
Can help break down barriers, improving communication across the entire organisation
Avoid the need for several departments to meet regularly
Help share good practise and ideas, making a project more cost effective
Disadvantages of matrix structure ?
Report to 2 line managers
May not be clear line of accountability
Difficult to coordinate
Time consuming for matrix team members to get use to working in the structure
What is decentralisation ?
Allows employees working in all areas of the business to make a decision
Meaning that employees working in different branches across the business are given more authority
What is centralisation ?
Occurs when small numbers of senior managers in a business take all the important decisions
Business have a centralised structure keep decision making firmly at the top of the hierarchy
Advantages of decentralisation ?
Improved level of customer service
Decisions are made closer
Training and developing junior management
Disadvantages of decentralisation?
Difficult to ensure consistent practise and policies across all branches.
Harder to achieve tight financial control
Risk of exceeding training costs
Constant good communication is needed
Advantages of centralisation ?
Easier to implement common policies and practises
Prevent other parts of the business from becoming too independent
Easier to coordinate and control
Strong leadership
Greater used of skilled staffs
Disadvantage of centralisation ?
Often extra layers in the hierarchy
Lack of authority drown the hierarchy may reduce bottom line manager motivation
Customer service does not benefit
