Structures Flashcards
What is hierarchy?
This means positions within the organisations 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.
What is chain of command?
This refers to when commands flow down from the decision-makers at the top of the organisation to the workers at the bottom.
What is a tall structure?
A tall structure has many levels of management and resembles a large pyramid. This type of structure suits large organisations with many specialised departments.
What are advantages of a tall structure?
- Each member of staff knows their role and who to report to.
- With many levels come 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.
What are disadvantages of a tall structure?
- 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:
-Managers supervise work more closely, which can put staff under pressure.
-Managers have fewer staff to share ideas with.
What is a flat structure?
This 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.
What are advantages of a flat structure?
- 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.
What are disadvantages of a flat structure?
- 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?
This is when removing one or more levels of management from a tall structure to make it flatter.
What are advantages of delayering?
- Money is saved paying the salaries of the management level that is removed.
- Quicker decision-making and communication are 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.
What are disadvantages of delayering?
- 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
What is a centralised structure?
Decision-making and control is kept at the very top level. In organisations with many branches, decision making is retained within head office and the senior management, directors or owners that work there.
What are advantages of a centralised structure?
- A high degree 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.
What are disadvantages of a centralised structure?
- 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 a decentralised structure?
Decision-making and control is delegated to individual branches or departments. This type of structure is best used in retail chains that need to respond to the needs of their local market, such as supermarkets.
