LO3- Understand The Effect That Different Organisational Structure Have On How Businesses Operate Flashcards
What is a flat structure?
A company structure containing few levels. There are very few layers between the top level and the bottom level. The chain of command tends to be short and span of control tends to be wide. Used for smaller businesses with fewer job roles.
What advantages does flat structure have?
Communication flows better,
decisions are quicker,
employees are motivated and empowered to make decisions,
costs less to run due to less employees.
What disadvantages do flat structure have?
Wider span of control means employees at the bottom level are not supervised closely which can lead to mistakes.
Reduced opportunity for promotion which might cause more ambitious employees to leave.
What is a tall structure?
A pyramid-shaped structure with many levels. It has few people at the top than bottom. A person is in charge of several people below them. Suited for medium to large businesses.
What advantages do tall structure have?
Everyone knows their job role
Employees are empowered to make decisions
Decisions can be quick
A narrow span of control enables supervision to be closer meaning less mistakes
Offers more opportunities for promotion
What disadvantages do tall structure have?
Responses to problem can be slow
People higher up can have blame put on them for decisions they didn’t make
Communication can be poor due to long chain of commands
Departments can compete and make decisions non-beneficial for the business
What is a matrix structure?
Where employees are grouped by function and product/ project. It suits businesses with multiple products or operating in different countries.
What advantages do matrix structure have?
It is very flexible
Close collaboration leads to greater efficiency and productivity
Communication is good
The collective expertise allows better and quicker decisions
Better motivation among team members.
What are the disadvantages do matrix structure have?
Managers can have different leadership style which can demotivate staff
Having two managers is costly
Can create unhealthy competition
What do Chief executive?
they make major corporate decisions, managing the overall operations and resources of a company, acting as the main point of communication between the board of directors
What do directors do?
they report to the chief of executive. Their main role is to communicate with the functional areas. Their main role is to make sure that the areas under their leadership contribute to achieving the overall aims of a business.
What do managers do?
Managers make sure that their department achieves the aims and objectives identified by their directors, to whom they report directly
What do supervisors do?
Supervisors are usually in charge of team members in a specific area of department.
What do assistances do?
Assistants are at the bottom of a structure and are responsible for carrying out instructions given by their supervisors.
What does chain of command mean?
The chain of command in a company refers to the different levels of command within the organization. It starts with the top position such as CEO or the business owner, all the way down to the front-line workers.
