business
- Created by: katier1234
- Created on: 18-12-19 13:28
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- Different organisational structures
- Flat structure
- Features:Small businesses Few layers Short chain of command Wide span of control
- Advantages
- Good communication, Authority delegated to staff, Decisions made quickly, Staff empowered to make own decisions, Fewer management levels keep costs down
- Disadvantages
- Wide span of control so many staff not well supervised leading to mistakes, Little chance of promotion
- Advantages
- Features:Small businesses Few layers Short chain of command Wide span of control
- Hierarchical/Tall Structure
- Features-Medium to large businesses: A pyramid structure with many layers of management,Person in charge at every level,Clear division of functions eg. HR, Marketing,Specialist managers, Long chain of command,Narrow span of control
- Advantages
- Everyone knows their roles and to whom they are accountable,
- Narrow span of control means close supervision of staff so fewer mistakes,
- More opportunities for promotion,
- Managers can specialise leading to business efficiency
- Disadvantages
- Slow response to problems,People higher up in the hierarchy are responsible for the decisions of people lower down,
- Poor communication due to long chain of command, Departments can compete with each other – not benefiting the whole business
- Advantages
- Features-Medium to large businesses: A pyramid structure with many layers of management,Person in charge at every level,Clear division of functions eg. HR, Marketing,Specialist managers, Long chain of command,Narrow span of control
- Centralised Structure
- Features-Small businesses: Decisions are made by people at the top of the organisation. Information and instructions flow from top to bottom Eg. Small haulage company. Owner makes all decisions passed on to drivers.
- Advantages
- Strong leadership allows for quick responses,People at the top tend to be more experienced with specialist skills so fewer mistakes,
- Decisions benefit whole business not just individual departments,
- Responses to problems are quicker as they only involve people at the top of the organisation
- Disadvantages
- Staff lower down may feel demotivated as decisions are made for them without consultation,
- There may be better understanding lower down the structure about customer needs which is not taken into consideration at the top
- Advantages
- Features-Small businesses: Decisions are made by people at the top of the organisation. Information and instructions flow from top to bottom Eg. Small haulage company. Owner makes all decisions passed on to drivers.
- Decentralised Structure
- Features- Staff lower down in the structure are given authority to make certain decisions Eg. Some supermarkets allow their Store Managers to make decisions based on needs of local market.
- Advantages
- Staff feel more empowered and motivated,
- People at the top have more time to focus on bigger, more important decisions,
- Decisions made to satisfy local demand so improving competitiveness
- Disadvantages
- Decisions made might not reflect those valued by the whole business,
- Quality of decisions relies on expertise of staff lower down in the business
- Advantages
- Features- Staff lower down in the structure are given authority to make certain decisions Eg. Some supermarkets allow their Store Managers to make decisions based on needs of local market.
- Matrix Structure
- Features- Staff lower down in the structure are given authority to make certain decisions Eg. Some supermarkets allow their Store Managers to make decisions based on needs of local market.
- Disadvantages
- Decisions made might not reflect those valued by the whole business,
- Quality of decisions relies on expertise of staff lower down in the business
- Advantages
- Staff feel more empowered and motivated,
- People at the top have more time to focus on bigger, more important decisions,
- Decisions made to satisfy local demand so improving competitiveness
- Disadvantages
- Features- Staff lower down in the structure are given authority to make certain decisions Eg. Some supermarkets allow their Store Managers to make decisions based on needs of local market.
- Flat structure
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