Structures

Tall organistions

A tall organisation structure is a hierarchical model where there are many levels of management with a clear chain of command.

Advantages of a tall structure

Managers oversee fewer employees allowing them to closely monitor and guide their employees leading to better performance management.

Managers and employees in each layer can focus on specific areas of expertise leading to a higher level of skill development in their respective roles.

Disadvantages of a tall structure

With many layers of management decisions may take longer to pass through the hierarchy leading to delays in action and response.

The rigid structure can stifle creativity and innovation as employees at lower levels may not have the authority to make decisions or propose new ideas.

Flat organisation

A flat organisational structure is one where there are few or no levels of middle management between staff and executives. this structure is typically found in small to medium sized orgnaistions with the following features.

Advantages of flat structure

With fewer layers of management decisions can be made more quickly leading to greater agility in responding to changes or opportunities.

With fewer managerial postions overhead costs related to management salaries and bureaucracy are reduced.

Disadvantages of flat structure

Managers in flat organisations may be stretched thin as they have to oversee a larger number of employees leading to potential high levels of stress and even burnout.

With fewer clear hierarchies and levels of management employees might experience confusion about there responsibilities or who to report to.

Delayering.

This involves removing one or more levels of hierarchy from the organisation structure.

Advantages of delayering

It offers opportunities for better delegation empowerment and motivation as the number of managers is reduced and more authority passed down the hierarchy.

It can improve communication within the business as messages have to pass through fewer levels of hierarchy.

Disadvantages of delayering

Not all organisations are suited to flatter organisational structures - mass production industries with low-skilled employees may not adapt easily.

Delayering can have a negative impact on motivation due to job losses especially if it is really just an excuse for redundancies.

Downsizing

This is when a firm closes down or merges aspects of their operations in order to reduce costs and remain competitive in the marketplace.

Centralised organistions

A centralised structure keeps decision making and authority at the top of the hierarchy amongst the senior managers.

Advantages of centralised organisations

Easier to implement common polls and standardised procedures across the whole business.

Easier to co-ordinate and control from the centre.

Disadvntages of centralised organisations

More bureaucratic- often extra layers of managers in the hierarchy.

Lack of authority down the hierarchy may lead to lack of motivation for junior managers.

Decentralised organistions

decentralised organsitons delegate decision making further down the hierarchy away from the centre it involves more managers in the hierarchy.

Advantages of decentralised organisations

Involving stage in decision making can improve levels of motivationan and commitment.

Involving staff in decisions can lead to greater creativity and innovation.

Disadvantages of decentralised organisations

Decentralised organising delegate authority down the chain of command thus reducing the speed of decision making.

Design making may be less stategic.

Matrix

Matrix structure is often used when cross-functional teams are created to run a project. Team members may come from different disciplines. The team will disband when the project is complete.

Advantages of a matrix structure

A good way of having different viewpoints and skills involved in a project.

Provide staff with an opportunity to learn new skills from other members of the team which may lead to greater motivation and productivity.

Disadvantage of a matrix

It is very expensive

Team members may have priority issues when having to report to two bosses.

Entrepreneurial structure

entrepreneurial structure is used in SMEs this is when the major decisions are made by one or two key personnel.

Advantages of entrepreneur structure

Decisions are often made quickl by the entrepreneur who is experienced within the business.D

Disadvantages of entrepreneur structure

There is a workload issue for the decision makers as responsibility for may tasks will fall to them.

Functional grouping

This is the traditional method of organising a firm into departments based on their core activities such as marketing or finance. This means Staff with similar expertise work together.

Product/ service grouping

This is when an organisation is divided into divisions based on a product they make or a product range.

Customer grouping

This is when an organisation divides its operations by types of customer. it may divide its customers into retail(high street sales) and online operations.

Place/ territory grouping

This is common among large multinationals. This is where the organisation divides its operations by geopolitical area.

Technological grouping

This is where the organistion divides its operation by the type of technology they require. it can often be used in the manufacturing industry where departments are created vased on the stage in the production process such as design or welding.