Structures Flashcards
What are the 7 structures?
Tall
Flat
Delayering
Centralised
Decentralised
Matrix
Entrepreneurial
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 staff member 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 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?
A flat structure is a pyramid shaped structure and commands flow from top to bottom. A flat structure has fewer layers of management and a shorter chain of command. This 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: mangers’ 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.
What are advantages of delayering?
Money is saved on 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 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.
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 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 in decentralised organisations. This type of structure is best used in retail chains that need to respond to needs of their local markets, such as supermarkets.
What are advantages of a decentralised structure?
The business reacts quickly to changing eternal (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.
