LO3 - Types Organisational Structures

Tall, Flat, Centralised, Decentralised and Matrix structure.

What is a Tall structure

This structure is usually used for big businesses.

It has many layers.

Advantages and disadvantages of Tall structure

+Employees can be closely supervised (a small span of control).

+Good promotional prospects for staff (motivation)

+There is a clear management structure showing authority and responsibility

- Employees may feel restricted

-Requires lots of middle managers (expensive)

-Decisions will take longer to make.

What is Flat structure

This structure is usually used for small businesses.

It has little layers.

Advantages and disadvantages of Flat structure

+Promotes better communication with staff

+Decisions making is more efficient

+Removes expensive layers of middle management.

-Fewer promotion opportunities for staff to gain.

-Roles and responsibilities

- It can hinder business growth.

What is a centralised structure

Involves keeping all of the major responsibilities at the centre of the organisation.

Managers made decisions.

Advantages and disadvantages of centralised structure.

+Senior management have more control.

+Standard procedures across all branches allows cost saving to be made.

+ Decisions are made in the interest of the whole businesses.

-Branch managers have limited responsibilities

-There may be few promotion opportunities with branches.

-Workers don’t fee; they are involved in decisions.

what is a decentralised structure

Employees make their own decisions.

Advantages and disadvantages of decentralised structure

+Workers are empowered to make decisions (motivated) .

+Branches can respond to changes quickly.

-Senior managers have no insight into day-to-day decisions that are made.

-More managers with the skills to make business decisions are needed (expensive).

What is a Matrix structure

When you take employees from your business and choose them to do a certain project.

Advantages and disadvantages of the Matrix structure.

+Staff can be allocated roles based on their expertise.

+It allows a very flexible approach, allowing the business to react quickly to changes.

-teams can be difficult to manage as staff may be working on different projects.

-It can cause possible conflict between departments.

• They report to the CEO.