U1- Structures Flashcards
Describe a flatstructure (3 things)
There are fewer levels of management
There is a short chain of command
Managers have a wider span of control
Give 3 advantages to a flat structure
It is much easier for information to flow up and down the organisation
Gathering information and consulting staff takes less time so some decisions can be made more quickly
The business is more able to respond and deal quickly to changes in the market
Give 2 disadvantages to a flat structure
The removal of management/ supervision levels means that there is less control throughout the organisation
Mistakes are easier to make and harder to identify
Describe a hierarchical (tall) structure (name 3 things)
Each manager has a narrow span of control
There are many layers of management and a long chain of command
This structure is useful where there has to be tight control over operations such as the military
Give 4 advantages of a hierarchical structure
There is a great deal of control and supervision
There are clearly defined roles and clearly defined procedures for carrying out those roles
Staff will become expert in the performance of their roles
The business can save money by having only one set of resources for these workers to use
Give 3 disadvantages to a hierarchical structure
Communication can be slow
Inability to change quickly makes the business vulnerable to changes in the market in which it operates
Decisions that require information from the various levels can take a long time to be made
Describe an entrepreneurial structure (name 3 things)
There are only 1 or 2 main decision makers
Usually used in small businesses
The business relies wholly on the expertise of the decision maker
Give 4 advantages of an entrepreneurial structure
Decisions are made quickly
Decisions are made for the benefit of the organisation
Decision makers are very experienced
Staff know who they are accountable to
Give 3 disadvantages to an entrepreneurial structure
Staff can become demotivated as they are not included in the decision making
If the decision maker is unavailable then the decisions can’t be made
It places a very heavy workload on these few individuals
Describe a matrix structure (name 3 things)
Used when the business is involved in a number of large projects such as a construction firm
Teams are formed with staff from all/ most of the functional departments
Each member of the team will have their own specialist skills and will be responsible for their own particular expertise
Give 4 disadvantages of a matrix structure
Teams of different specialists provide a range of skills that can increase innovation
Employees can be motivated and empowered
There is no need to fund the structure permanently
Complex problems can be solved effectively
Give 2 disadvantages of a matrix structure
Employees will have 2 managers to report to: their function manager and the matrix
Matrix structures can be costly to set up and manage
Describe a centralised structure (name 2 things)
Relies heavily on a number of key individuals who make most of the decisions within the organisation
Complete control of the organisation is held by these key members
Give 4 advantages of a centralised structure
A standard method of operation is developed across the whole business
Economies of scale can be achieved through centralised purchasing
Leadership should be strong
It is easier to promote a corporate culture/ image
Give 3 disadvantages to a centralised structure
It stifles creativity of the staff
It does not allow for staff to be easily prepared for promotion
It is difficult for decision makers to relate to local conditions because they are removed from the day to day operations of the business
Describe a decentralised structure (name 3 things)
There is responsibility and decision making given to Middle and lower managers
Some decisions are taken locally, delegating authority
Head office is seen more as providing a support role for the organisation
Give 4 advantages to a decentralised structure
It allows the organisation to be more responsive to changes in the market or environment in which it operates
The people marking the decisions are much closer to the customers and have a far better knowledge of their needs
Being trusted to make decisions can make the staff feel more wanted and appreciated which in turn increases their motivation
It allows senior management to focus on key decisions
