Structures of an organisation Flashcards
What are the different types of structures?
- Tall
- Flat
- Delayering
- Downsizing
- Centralised
- Decentralised
- Matrix
- Entrepreneurial
What is a tall structure?
A hierarchy. There are lots of levels, long chain of command, narrow span of control, long decision making process
Narrow span of conrtol advantages:
- Managers have more time for planning supervision and decision making
- Managers can support subordinates as they ahve more time
- Managers have less subordinated to manage
- Staff can be closely supervised
Narrow span of conrtol disadvantages:
- Managers watch stagg closely, under pressure (micromanage)
- Managers have less staff to share ideas with
- A greater workload is shared between fewer staff
What are advantages of a tall structure?
- Lots of promotion opportunities
- Staff know their roles and who they report to
- Managers manage fewer subordinates (narrow span of control)
What are disadvantages of a tall structure?
- React slowly to external factors
- Low decision making
- Managers my be autocratic (doesn’t care about others opinions)
What is a fall structure?
A short chain of command, fast decision making, wide span of control, little promosion opportunities
Wide span of control advantages:
- Delegating tasks to subordinated increases moral as they are more trusted
- Staff are empowered to make decisions themselves
Wide span of control disadvantages:
- Time os at a premium which leads to snap decisions
- Less time for planning due to being busy
- Subordinates ay have no-one to seek help from
- More staff to manage so lots of delegation is required
- Pressure on management due to increased workloas
- High degree of trust required
What are advantages of a flat structure?
- Infromation is quickly passed between levels
- Quick response to external factors
What are disadvantages of a flat structure?
- Less levels=less promition so staff are demotivated and move elsewere (or quality drops)
- Staff delegate to subordinated putting more pressure on lower levels
What is delayering?
Removing layers of a hierchy to make a business flatter
What are advantages of delayering?
- Money is saved on wages (less manager roles)
- Decision making quicker due to shorter chain of command
- More responsive to external factors
- Widens span of control
- Improved communication
- May improve productivity
- Removed department rivalry
- Encourages innovation
- Better customer service as managers are closer to customers
What are disadvantages of delayering?
- Fewer promotion opportunities
- High cost of redundancy (managers are paid off) payments
- May lose key members of staff
- Massive uncertainty amounst staff
- Not all organisations may suit as low skilled employeed may not adapt
- Motivation decreases
- Creates skills shortage
What is Downsizing?
When an organisation either closes locations or merges divisions to premanently reduce its workforce
What are the current trends in downsizing?
Stores were closing down due to online shopping but they are beginning to open up again
What are advantages of downsizing?
- The business may be more efficient
- Cuts costs (wage and rent)
- The business becomes more competitive
What are disadvantages of downsizing?
- Causes unrest in staff
- Staff feel vulnerable, demotivated
- Valueable skills may be lost
What is centralised decision making?
Where major responsibilities are at the centre/top of the organisation (head office) which is easier to promote a consisntnt corporate image
What are advantages of centralised decision making?
- High corporate identity and strategy
- Procedures are standardised (consistancy)
- Lower risk of leaks
- Greater uniformity (familiar, loyal)
- Subordinates remain focused on core activities
- Senior staff can make better decisions
What are disadvantages of centralised decision making?
- Low suborninate responsibility leads to demotivation
- Loss of market share (less responsive)
- Decisions don’t effect local markets
- React slowely to external factors
- Lack of innovation
- Managers and employees are disconnected
- Managers may becoome burdened by amounts of work
What is decentralised decision making?
When control in delegated to individual branches or departments in the business
What are advantages of decentralised decision making?
- Quick reaction to external factors
- Decision making fast because local managers dont need to consult seniors (respond to local markets)
- Subordinated are empowered
- Releives senior management from constant decision making burden
- Important decisions still made by managers
- Delegated to branches
What are disadvantages of deceltralised decision making?
- Corporate image may be lost if each branch opperates differently
- Local branches may compete with eachother
- Branch managers may lack experience
- Higher costs due to duplication of resources
What is a matrix structure?
When an organisation sets up a temporary project and different teams cary out tasks
What are advantages of a matrix structure?
- Specialised staff used for all areas
- Complex problems can be solved
- Staff use their expertise so are motivated and have job satisfaction
What are disadvantages of a matrix structure?
- Many managers means high costs
- Resources may be duplicated
- Staff may be unsure who to report to
What is an entrepreneurial structure?
(mainly used by small organisations)
This is when there is one key decision maker, the owner, who makes all the decisions
What are advantages of an entrepreneurial structure?
- Decisions made quickly as no consultation needed
- Staff know who they report to
- People know who makes the decision
What are disadvantages of an entrepreneurial structure?
- Owner has a heavy workload
- If owner is busy key decisions can’t be made
- Other staff don’t get to be innovative which demonivates and stiffles creativity
