1b. Different Types of Organisational Structure

What are the two ways a business typically structures their organisation?

• Hierarchal (tall) organisational strcutures

• Flat organisational structures

What is a hierarchal (tall) organisational structure?

• Has multiple levels of management

• A long chain of command

• Managers will have a narrow span of control and a relatively small number of subordinates (staff)

• Common in large organisations with complex operations e.g. government agencies and universities

What is a flat organisational structure?

• Only a few layers of management

• A short chain of command

• Managers have a wide span of control with more subordinates

• Commonly used by smaller businesses or those adopting a more modern approach to management

What are the advantages and disadvantages of a hierarchal (tall) organisational structure?

✅Provides a clear hierarchy of authority and defined roles and responsibilities

✅Promotes specialisation and expertise within each department or function

✅Offers opportunities for career advancement and promotion within the organisation

❌Can create communication barriers between upper and lower levels of the hierarchy

❌Decision-making can be slow as information must pass through multiple layers of management

❌Can lead to bureaucracy (excessive rules, procedures, making a business less flexible) and excessive levels of management

What are the advantages and disadvantages of a flat organisational structure?

✅Promotes a culture of collaboration and open communication

✅Encourages creativity and innovation, as employees have more autonomy and flexibility

✅Decision-making can be faster and more efficient

❌Can lead to role ambiguity and lack of clear hierarchy

❌May not provide clear opportunities for career advancement or promotion

❌May require employees to take on multiple roles and responsibilities leading to burnout and overwhelm