Structures Flashcards
Management structures
- each organisation can use a variety of different methods to organise its staff and resources in a way that suits it best.
- One way in which they can do this is through the main structure of the organisation
What is tall structure?
-(bottom) employees, supervisors, middle management, senior management, board of directors/owners (top)
- most organisations have a hierarchy
- this means positions within the organisation with different levels of authority and responsibility; those with the least amount of authority and responsibility at the bottom of the organisation and those with the most at the top
- commands flow down from the decision-makers at the top of the organisation to the workers at the bottom this is known as the chain of command
- A tall structure has many levels of management and resembles a large pyramid. This type of structure suits large organisations with many specialised departments.
Advantages and disadvantages of a tall structure
Advantages
-each staff member knows their role and who to report to
-with many levels, comes many promotion opportunities which can motivate staff
-there is a narrow span of control which means;
+ managers have more time for planning supervision and decision-making
+ managers can support subordinates
Disadvantages
-Communications take time to flow down through the levels which slows down decision-making
-The organisation can be slow to react to changes in the market
-the narrow span of control means;
+ Manager supervisor work more closely which you can put stuff under pressure
+ managers have fewer staff to share ideas with
What is a flat structure?
- (bottom) employees, management, board of directors/owners (top)
- A flat structure is also a pyramid shaped structure and like a tall structure commands flow from top to bottom
- however a flat structure has fewer levels of management and a shorter chain of command than a tall structure
- this type of structure suits small to medium-sized organisations
Advantages and disadvantages of a flat structure
Advantages
-information can be communicated quickly between levels
-The organisation can respond quickly to external (PESTEC) factors, such as competition.
-there is a wide span of control which means:
+ managers have to delegate tasks to staff which can raise morale as staff feel trusted
+ staff are empowered to make decisions themselves
Disadvantages
-fewer levels means fewer promotion opportunities so quality staff may leave to gain promotion in larger organisations
-as there are fewer management levels, staff may be delegated more tasks, which could put them under pressure
-The wide span of control means:
+ managers time is at a premium which can lead to snap decisions
+ less time for planning
+ subordinates may have no one to seek help from
What is delayering?
Removing one or more levels of management from a tall structure to make it flatter is known as delayering.
What are advantages and disadvantages of delayering?
Advantages
- money is saved on paying the salaries of the management level that is removed
- quicker decision-making and communication is possible as there is a shorter chain of command
- The organisation can be more responsive to changes in the market as there are fewer levels for information to pass through up to the decision-makers
- there is a wider span of control
Disadvantages
- there are fewer promotion opportunities for staff
- redundancy payments will cost the organisation a significant amount of money
- The organisation will lose key members of staff in the restructure
- there is a wider span of control
Centralised structure
- decision-making and control is kept at the very top level of a centralised organisation
- in organisations with many branches this means important decision-making being retained within head office and the senior management, directors or owners that work there
- in centralised organisation control is kept in the centre at the very top level
Advantages and disadvantages of a centralised structure
Advantages
- A higher advantage of corporate identity and strategy exists as decisions are made for the whole organisation
- procedures are standardised which ensures consistency
- there is a low risk of important information leaking from branches or departments
Disadvantages
- less responsibility is given to subordinates which can result in demotivated staff
- decisions will not reflect the needs of local markets
- The organisation will react slowly to external (PESTEC) factors, such as the competition improving their product range
What is decentralised structure?
- decision-making and control is delegated to individual branches or departments in decentralised organisations
- this type of structure is best used in retail chains that need to respond to the needs of their local markets such as supermarkets
- while the overall strategy of an organisation such as Tesco will be centralised, many decisions will be decentralised, such as buying and selling local products and advertising in the local area
Advantages and disadvantages of a decentralised structure
Advantages
- The business reacts quickly to changing external (PESTEC) factors
- Decisions are made quickly as local managers don’t need to consult senior managers before implementing decisions
- more subordinates are empowered which encourages creativity
- senior management at head office are relieved of the burden of constant decision-making
Disadvantages
- The organisation can lose an overall corporate Image if each department/branch is operating differently
- local branches could start to compete with each other if they are allowed to make key decisions
- additional training required for middle management
- lower level management can make decisions that could harm the business as a whole
What is the matrix structure?
- A matrix structure involves an organisation being arranged into temporary project teams to carry out a particular task, such as developing a new product or service or a large-scale construction operation
- teams are made up of employees from different functional areas: marketing, finance, operations, R&D, and so on.
- each staff member will have two managers: one will be the manager of the functional area, such as marketing or finance, and the other will be their project manager
Advantages and disadvantages of the matrix structure
Advantages
- each team have specialised staff from all functional areas
- complex problems can be solved
- staff can use their expertise as such job satisfaction and motivation
Disadvantages
- many managers across all the project teams will mean high wage costs
- duplication of resources such as Administration staff and equipment
- staff can be confused as to who to report to
What is the entrepreneurial structure?
- this is a structure used primarily by small organisations.
- Usually they have one main decision maker the owner himself or herself.
- Of course other staff and have some input but generally they are rarely consulted and final decisions are made by the owner.
Advantages and disadvantages of an entrepreneurial structure
 Advantages
- decisions are made quickly as there is little consultation
- Staff know who they need to report to
- High quality decisions are made as decision-makers experienced
Disadvantages
-The structure can create a heavy workload for the main decision maker
-if the order is busy or not available key decisions cant be made
-other staff don’t get a chance to show initiative, stifling creativity and possibly demotivating some staff.


