Hierarchical & tall structures - used for large multi-site operations such as supermarket chains. Advantage - responsibility and promotion path is clearly defined, the environment encourages the use of specialist managers and employees can develop a loyalty to their department. Disadvantages - the high degree of bureaucracy means there is a slow response to changing customer needs, communication across sections can be poor and departments can make decisions that benefit only them.
Flat structure organisation - will have only few or one layer of management. The chain of command is short so there is good communication and response. Advantages - more communication which leads to better team spirit, less bureaucracy so faster and easier decision making and fewer management means lower costs. Disadvantages - workers may have more than one manager, system may limit growth and function of each person could be blurred.
Matrix organisation - are used to develop new products and services. Advantages - individuals can be chosen according to the requirements of the projects and project managers are directly responsible for completing the project within a specific time and budget. Disadvantages - conflict of loyalty between org and line manager over resources, project progress hard to monitor and costs can be increased by additional managers.
Centralised and decentralised organisation
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