Organisational structures

Organisational structures

A system that outlines how tasks, responsibilities and reporting relationships are arranged within a company.

What type of chains of command does a hierarchal structure have?

Long chains of command

What type of span of control does a hierarchical structure have?

Narrow spans of control

What’s one advantage of a hierarchal structure?

Increased motivation as there is room for promotion

What’s one disadvantage of a hierarchical structure?

Higher costs as manager salaries are high

What type of chains of command does a flat structure have?

Short chains of command

What type of span of control does a flat structure have?

Wide spans of control

What’s one advantage of a flat structure?

Faster communication between levels

What’s one disadvantage of a flat structure?

No room for promotion

What does a matrix structure have instead of chains of command and spans of control?

Project teams across functional areas

What is one advantage of a matrix structure?

Utilises skills and expertise from each department

What’s one disadvantage of a matrix structure?

Subordinates have two mangers, leading to high pressure and confusion