Structures Flashcards
What is hierarchical structure?
Many layers of management
Narrow span of control
Long chain of command
Instructions passed down and information passed up
Hierarchical advantages
A lot of control and supervision Clearly defined roles and procedures Staff have someone who will supervise their work Staff become specialist Clear promotional opportunities
Hierarchical disadvantages
Decisions requiring information from different levels of management takes a long time
Communication can be slow
Staff find it difficult to respond to customer requests
Business is vulnerable to changes as they can’t change quickly
What is flat structure?
Few layers of management
Wide span of control
Short chain of command
Flat structure advantages
Information quick to be passed through the business
Decisions are made more quickly as consultation takes less time
Customers needs quickly dealt with
Quick response to market changes
Flat structure disadvantages
Less control throughout the organisation
Mistake are easier made
Fewer opportunities for promotion
What is matrix structure?
Project teams to complete specific tasks
Each team has a project leader
People on the team have their own arc of specialisation from different functionslnareas
Matrix structure advantages
Different specialists provide a range of skills increasing innovation
Complex problems solved effectively
Employees motivated and empowered by working in diverse teams
Improves relationship between staff from different functional areas
Matrix structure disadvantages
Employee has two managers
Confusion and conflict between department and project group
Costly to set up and manage
What is entrepreneurial structure?
Used in small businesses where decision making has to be quick by key staff
Where there’s a lot of reliance on main decision maker
Entrepreneurial advantages
Decisions made quickly
Very experienced decision makers
Decisions made for the benefit of the organisation
Staff know who they are accountable to
Entrepreneurial disadvantages a
Decisions can’t be made if decision maker is unavailable
Places heavy workload on decision maker
Staff demotivated as aren’t involved in decision making
Doesn’t allow initiative from staff
What is centralised structure?
Important decision me made st head office relying on a number of key individuals
Centralised advantages
Easier to promote a corporate image
Standard method Of operation across whole business
Economies of sale
Decisions made for benefit of the whole organisation
Strong leadership who make decisions being experienced
Centralised disadvantages
Staff have very little authority leading to de motivation
Decisions may not reflect local conditions
Does not develop staff
Burden of decision making lies with just a few senior directors
What is decentralised structure?
Decisions can be taken locally at branch level with responsibility five to middle/lower managers and head office provide more of a supporting role for the organisation
Decentralised advantages
Decision making quicker
More responsive to change
Decision makers have better knowledge of customer needs
Delegation of staff develops skills and prepares for promotion
Staff more motivated as they are trusted to make decisions
Senior managers can focus on key decisions
Decentralised disadvantages
Some overall control of business is lost
Inexperienced managers making decisions harms whole organisation
Greater supervision may be required
Middle/lower management may need training
Delayering
Manager get wider span of control Better communication Decision making is quicker Staff are motivated because they have increased responsibility But.. Reduced opportunity for promotion
Downsizing
-reducing scale of operations to meet actual demand
Reduced resources
Focus on core operations
Remaining staff are more motivated as they feel they have greater power
But..
Losing experienced staff and cost of redundancies
Possible bad publicity
Advantages of managers having wide span of control
Delegation of staff who are more empowered to makes decisions
Motivational to managers as they have more power
Fewer manager wages
Fewer levels of communication
Quality of staff will be improved
Disadvantages of managers having a wide span of control
Stressful for managers
Managers have less time to deal with staff problems
Workers have less time to meet with management
Subordinates may not want to make decisions
Less time for planning so poor decisions
