Structures

Question 1

FLAT Structure

Answer 1

.only a few levels of management
.short chain of command
.managers have wider span of control
.managers are directly responsible for more employees

Question 2

What are the ADVANTAGES of Flat Structure

Answer 2

.information flows quickly
.consulting staff on decisions takes less time
.business is more able to respond to market changes
.customers needs are quickly identified and dealt with

Question 3

What are the DISADVANTAGES of Flat Structure

Answer 3

.removal of management levels means there is less control throughout the business
.mistakes are easier to make

Question 4

HIERARCHICAL Structure

Answer 4

.many layers of management
.long chain of command
.each manager has a narrow span of control
.information and decisions need to go through each level

Question 5

What are the ADVANTAGES of HIERARCHICAL Structure

Answer 5

.great deal of control and supervision
.clearly defined roles and procedures to follow
.all members of staff are supervised
.staff have the chance to become experts in their roles

Question 6

What are the DISADVANTAGES of HIERARCHICAL Structure

Answer 6

.decisions making can take a long time as every level must be consulted
.communication can be slow therefore customers need can take a while to meet
.not being able to adapt to changes in market quickly can make business vulnerable

Question 7

ENTREPRENEURIAL Structure

Answer 7

.there are only 1 or 2 main decision makers
.usually used in small businesses but also newspapers and money markets
.this type of business relies on the expertise of the decision maker.

Question 8

What are the ADVANTAGES of ENTREPRENEURIAL Structure

Answer 8

.decisions are made quickly
.decisions are made for the benefit of the organisation
.decision markers are very experienced
.staff know who they are accountable to

Question 9

What are the DISADVANTAGES of ENTREPRENEURIAL Structure

Answer 9

.if decision marker is unavailable then decisions cant be made
.places a very heavy workload on few individuals
.does not allow staff to use their imitative-can lead to demotivation
.difficult to use in large businesses

Question 10

MATRIX Structure

Answer 10

.used when the business is involved in a number of large projects or long term contracts with their customers to provide goods or services
.staff ‘teams’ are formed with in functional departments with each team member having their own specialist skill which they are responsible for

Question 11

What are the ADVATNATGES of Matrix Structure

Answer 11

.teams of specialist provide innovation
.employees can learn new skills and experiences from working in diverse teams
.employees can be motivated as they are involved in new experiences

Question 12

What are the DISADVANTAGES of Matrix Structure

Answer 12

.2 managers to report to
.can be conflict and duplication of tasks between departments
.can be costly to set up and manage

Question 13

CENTRALISED Structure

Answer 13

.also relies heavily on a few key individuals who make most of the decisions
.complete control of the organisation is held by key members
.usually senior managers, directors or owners
. a hierarchical structure is also heavily centralised in terms of decision making

Question 14

What are the ADVANTAGES of Centralised Structures

Answer 14

• economies of scale can be achieved through centralised purchasing
• easier to promote a corporate image
• decisions are made by experienced members
• strong leadership

Question 15

What are the DISADVANTAGES of Centralised Structures

Answer 15

• heavy reliance on key members
• stifles the creativity of staff unmotivated
• difficult to take local conditions into consideration when making decisions as managers are not working in the day-to-day operations

Question 16

DECENTRALISED STRUCTURES

Answer 16

• gives responsibility and decision making to middle and lower managers
• allows for decision making to be based around local needs and wants
• head office is seen more for prod using support to the organisation

Question 17

What are the ADVANTAGES of Decentralised Structure

Answer 17

• decision making is quicker as chain of command doesn’t need to be consulted
• organisation is more responsive to change
• meets customers needs better
• employment of staff while developing professional skills
• gives staff responsibility-motivated

Question 18

What are the DISADVANTAGES of Decentralised Structure

Answer 18

• some overall control can be lost

* inexperienced managers can make decisions that harm the business

Question 19

DELAYERING

Answer 19

This is the removal of levels of management

Communication and decisions would be faster, reduces cost of salaries and increased staff empowerment