3.1 Different organisational structures

Question 1

What is an organisational structure?

Answer 1

Way in which the workforce within a business is organised, including job roles and communication paths

Question 2

What does an organisational chart provide?

Answer 2

A visual representation of the organisational structure

Question 3

What are the different ways of organising hierarchies?

Answer 3

Product/service
Geographical location
Function

Question 4

What are the elements of an organisational structure?

Answer 4

Who reports to who
Communication paths/lines
Hierarchical status
Greater authority
Chain of command
Responsibility
Span of control

Question 5

Elements of a hierarchical organisation structure?

Answer 5

Long chain of command
Managers have a narrow span of control
Small number of subordinates or staff
Wage bill likely to be higher

Question 6

Advantages of a hierarchical structure?

Answer 6

Areas of the business are closely managed
Managers have tight control over employees
Excellent progression opportunities

Question 7

Disadvantages of a hierarchical strucutre?

Answer 7

Slow communication due to a long chain of command
Employees may be demotivated due to lack of autonomy
Organisational changed can be slow to implement

Question 8

Elements of a horizontal strucutre?

Answer 8

Managers have a wide span of control
More subordinates or staff
Short chain of command
More effective communication

Question 9

Advantages of a horizontal structure?

Answer 9

Less layers leads to a better communication
More autonomy and responsibility for employees
Employees may feel more motivated, therefore being more productive