Organisational Structure Flashcards
Hierarchy
structure of different levels of authority in a business organisation, one on top of another.
Span of control
the number of people one person is directly in charge of.
Flat Structure
A flat structure has few layers of management. But each manager will have a large span of control (lots of people to manage.)
Hierarchical Structure
A hierarchical structure is a traditional method of organising people within an organisation.
People with most authority and responsibility are at the top and there are layers of management.
Benefits of a Hierarchical Structure
Clear channels of communication
Individuals can clearly see where their role is in the organisation
Opportunities for promotion
Drawbacks of Hierarchical Structure
Too closely controlled at the bottom
Communication can take too long
Too many layers of managers can be expensive
Benefits of a Flat Structure
Clear communication
Cheaper having one manager
Employees get more responsibility and autonomy (self-government)
Drawbacks of a Flat Structure
Higher workload for manager
No motivation for promotion
Employees feel less engaged
Matrix Structure