Organisational Structures Flashcards
What does organisational structure show?
It shows:
* Who has overall responsibility for the organisation
* The different levels of authority and responsibility
* Lines of communication and chain of command
* Span of control for different managers
* Different relationships that exist within the organisation
* Where work could be delegated to subordinates
Organisational structure is crucial for understanding how a business operates.
What is a decentralised organisational structure?
Decision making is delegated to departments and subordinates down the chain of command.
Associated with a flat structure.
What is one advantage of a decentralised structure?
May motivate staff.
Staff have greater knowledge and involvement in decision-making.
What is a potential disadvantage of a decentralised structure?
Can be harder to ensure consistency across the organisation.
May lead to poor decision making as branch managers may not be as experienced as senior managers.
Describe a tall (hierarchical) structure.
Has many layers of management with a long chain of command.
Often found in public sector organisations, e.g., schools.
In a tall structure, where is authority located?
Those with the least amount of authority are at the bottom, and those with the most are at the top.
Suits large organisations with many specialised departments.
What does downsizing involve?
Removing some activities from the organisation’s structure or merging two divisions together.
Some activities may be outsourced.
What is one advantage of downsizing?
Cuts costs of wages and rent.
A leaner and more efficient business is more competitive.
What is a disadvantage of downsizing?
Valuable skills and knowledge lost when redundancies are made.
Remaining staff may feel vulnerable and demotivated.
What characterizes a centralised structure?
Decision making and control is kept at the very top level (Senior management).
Associated with tall structures.
True or False: In a centralised structure, employees are consulted about decisions.
False.
Employees are not consulted about decisions.
What are some advantages of a tall structure?
- Each member of staff knows their role and who to report to
- Many levels mean more promotion opportunities
- Narrow span of control allows for better planning and supervision
These advantages can lead to a more organized work environment.
What are some disadvantages of a tall structure?
- Communication can be slow
- The organisation can be slow to react to changes in the market
- Narrow span of control puts pressure on managers
These disadvantages can hinder responsiveness and adaptability.
What is a flat structure?
Has fewer layers of management and a shorter chain of command.
Suits small to medium-sized organisations.
What is a matrix (task-based) structure?
Involves arranging an organisation into temporary project teams to carry out a particular task.
An employee will have two managers: one from their original department and one from the project team.
