business structures impacts

tall structure advantages

• each member of staff knows who and where to report to

• with many levels of management come more promotion opportunities, which can motivate staff.
  there is a narrow span of control meaning managers have more time for decision making and supervision, and managers can also support subordinates

tall structure disadvantages

• communication takes long to flow between levels, which can slow decision making

• the organisation could react slowly to changes in the market

• narrow span of control, meaning managers have to work closely with staff which could put staff under pressure, and there isnt many staff to share ideas with

flat structure advantages

• information can be passed quickly between levels

• organisation can react quickly to external factors

flat structure disadvantages

• fewer levels of management meaning less promotion opportunites which can lower staff motivation

• as there are fewer levels of management, staff could be put under pressure as more tasks

centralised structure advantages

• there is a high degree of corporate identity and strategy exists as decisions are made for the whole organisation

• procedures are kept standardised which ensures consistency

• low risk of information leaking from branches or departments

centralised structure disadvnatages

• decisions will not reflect the needs of local markets

• the organisation will react slowly to external factors

• less responsibility given to staff which can lower motivation

decentralised structure advantages

• business will react quickly to external factors

• subordinates are empowered which encourages creativity

• decisions are made quickly as local managers do not need to consult with senior managers before making decisions

decentralised structure disadvantages

• the organisation could lose overall corporate image if each branch is operarting differently

• local branches may start competing against each other, if allowed to make key decisions

matrix structure advantages

• each team has specialised staff from each functional area

• complex problems can be solved

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matrix structure disadvantages

• staff can be confused who to report to

• duplication of resources such as administration staff and equipment may occur

entrpreneurial structure advantages

• decisions are made quickly are there is very little consultation

• staff know who to report to

• high quality decisions are made as decison makers are experienced

entrpreneurial structure disadvantages

• can become a heavy workload for the main manager

• if the owner is busy, key decisions cant be made