organisational design Flashcards
what are the advantages of a tall structure
many levels of hierarchy
more opportunities to promotion
narrow span of control
what are the disadvantage of a tall structure
message can get distorted
bottom levels become unmotivated
large gap between top and bottom
what are the advantages of a flatter structure
few levels of hierarchy
fewer managers - cut costs
more job satisfaction
what are the disadvantages of a flatter structure
wide span of control
what is span of control
number of subordinates directly under supervision by line manager
what is a centralised business
decisions are made at the top of the hierarchy local managers are not given power
what is a decentralised business
employees lower down the hierarchy are given decision making power. allowing managers to concentrate of strategy.