ORGANISATIONAL STRUCTURES AND DIFFERENT WAYS OF WORKING Flashcards
Organisational structure
How people and departments are organised within a business
Why
To provide clear lines of communication and outline different responsibilities throughout a business/organisation
There are two types of organisational structures:
Tall
Flat
TALL STRUCTURE
Have many layers of staff from top to bottom.
How?
Usually starts with a board of directors at the top down to floor staff at the bottom.
FLAT STRUCTURE
Have only a few layers of staff, maybe as little as two or three
How
Usually starts with a board of directors at the top, one layer of managers in the middle and shop floor staff on the bottom
Tall
Advantages
There are clear lines of communication from the top to the bottom.
Managers tend to only be responsible for a few people.
There are opportunities for people to gain promotion and move up, good motivation.
Tall
Disadvantages
Subordinates may feel too controlled by their line manager. Reducing motivation and creativity.
Workers may only talk to immediate colleagues and may be less interactive towards those in other areas of the business.
Tall
Sustainability
Tall structures suit large organisations.
Tall structures suit non-creative businesses where workers perform limited clear tasks.
Flat
Advantages
Managers tend to delegate responsibilities to workers. Increase motivation.
Workers are likely to talk to a wider range of colleagues, therefore better at generating ideas
Flat
Disadvantages
There’s not always clear lines of communication and workers may miss out on information which could help them.
Managers may have a large number of workers to oversea.
Promotion opportunities are limited which reduces motivation.
Flat
Sustainability
Flat structures suitable for creative businesses.
Flat structures are good for smaller businesses.
Organisation charts
A diagram that shows how the workers are organised in a business
How?
There are five important terms which are connected to organisation charts: Authority, subordinates, delegation, chain of command and span of control.