Organisational Structres

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  • Organisational Structures
    • Hierarchical
      • A pyramid shape with many levels, getting thinner towards the top.
      • Businesses with many departments (such as CocaCola)  would use a hierarchical structure
      • Advantages
        • employees can specialise and develop expertise in their field
        • opportunities for promotion motivates employees
        • authority and responsibility are clear and well defined
      • Disadvantages
        • it may be more difficult for the business to adapt and change
        • there could be rivalry between departments leading to decisions that benefit one team, instead of the organisation as a whole
        • communication between different departments may be less effective
    • Flat
      • A flat structure means that the business either has no management layers or the 'chain of command' is very short and staff level employees all report to one overall manager
      • Advantages
        • simple, faster decision making processes
        • better communication and relationships between different roles
        • it is easier for the business to change and adapt
      • Disadvantages
        • lack of employee specialism and specific job functions
        • difficulties in scaling up and growing the company
        • lack of long-term growth or opportunity for promotion

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