business theme 2 - organisational structures

hierarchal structure

long chain of command, makes the business easier to control and provides opportunities for promotion

it can be costly and slow down effective communication

flat structure

few levels of management but a wider span of control

improves business’ flexibility but lines of authority arent always clear

centralised

• decisions are made by senior managers

• increased control and standardisation

• decisions can be slow

decentralised

• decisions are delegated to regional employees

• decisions devolved to branches that know customers better

• loss of control

size

a business expands and needs more employees

a business can downsize or delayer to:

• reduce costs

• improve efficiency

• improve communication