Organisational structure

Question 1

Define ‘organisation’ and ‘organisational structure’.

Answer 1

An organisation is a group of people that work together and organisational structure shows how the people in the business work together.

Question 2

What are the two spans of control? (Structures)

Answer 2

Tall and flat structures

Question 2

Define ‘tall structure’.

Answer 2

Narrow span of control, few subordinates for each manager

Question 3

Define ‘flat structure’

Answer 3

Wide span of control, many subordinates per manager

Question 4

What is one advantage of a tall structure?

Answer 4

• Managers can easily communicate with and exert control over subordinates
• There are clear lines of reporting and problems can be dealt with quickly

Question 5

What is one advantage of a flat structure?

Answer 5

• Messages from the top of the structures (CEO’S and senior managers) can reach subordinates quickly
• Flat structures tend to be more responsive to changes in environment

Question 6

What is a matrix structure? Give an example

Answer 6

Matrix structure is often used for projects and cross-departmental teams of people working together to accomplish a pre-defined task. Teams report to 2 or more managers.
Example - temporary team coming together for a product launch, or new marketing campaign, or opening a new branch

Question 7

What is a shamrock structure?

Answer 7

Shamrock’s structure helps to ensure a focus on core productive efficiency. The only staff employed are essential to producing the main product or services. The other functions of the business are outsourced to another business or individual contractors.