UB8 : Structures Flashcards
What is a Tall Hierarchical Structure?
Chain of Command – how instructions are passed from one level to another.
Name the advantages of Tall Structures
Advantages
- more opportunities for promotion which can lead to
greater staff motivation
- staff gain more support from their line manager
- there is a higher degree of supervision as each line
manager has a limited number of people they are
responsible for
Name the Disadvantages of Tall Structures
Disadvantages
- many levels of hierarchy
- span of control is narrow, and the chain of command
is long, making communication slower as
instructions take longer to travel through the levels
of the organisation.
- longer lines of communication can make the firm
less responsive to change.
- can be expensive to run due to high wage costs
Name the advantages of Flat Structures
Advantages
- few levels of hierarchy
- lines of communication are short, making the firm
responsive to change and decision-making quicker
- staff working in a flat management structure can be
empowered to work independently and take on
more responsibility
Name the disadvantages of Flat Structures
Disadvantages
- wide span of control means that tasks must be
delegated, which can lead to employees feeling
stressed and managers feeling overstretched
- less promotion opportunities within a flat structure,
which may lead to the company losing staff to other
organisations
Describe Delayering
Within hierarchical structures a method that can be used to reduce costs is to remove a layer of management, while expecting staff to produce the same level of output. This can:
- save the company money on managerial wages
- make the business more responsive to change due
to the reduction of layers of management
Describe Downsizing
Downsizing is when a firm closes down or merges aspects of their operations in order to:
- reduce costs
- remain competitive in the marketplace
Centralised Organisation
Where most decisions are taken by senior managers and then passed down the organisational
hierarchy. This structure relies on having strong and competent managers and involves very little delegation.
Decentralised Organisation
Important decisions made by managers and
employees are motivated and empowered.
Matrix Structure
Specialists are in project teams to have specific
tasks. Therefore, there is no hierarchy and everyone is empowered.
Entrepreneurial Structure
Decisions are made centrally usually with very little staff input – relies on a few key workers.
Functional Grouping
The traditional method of organising a firm into departments based on their core activities such as marketing or finance. This means that staff with similar expertise work together.
Place/Territory Grouping
This is common among large multinationals. This is where the organisation divides its operations by geographical area.
Product Grouping
This is when an organisation is divided into divisions based on a product they make or a product range.
Technological Grouping
This is where the organisation divides its operation by the type of technology they require. It can often be used in the manufacturing industry where departments are created based on the stage in the production process such as design or welding.