business theme 2 - organisational structures

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5 Terms

1
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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

2
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flat structure

few levels of management but a wider span of control

improves business’ flexibility but lines of authority arent always clear

3
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centralised

  • decisions are made by senior managers

  • increased control and standardisation

  • decisions can be slow

4
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decentralised

  • decisions are delegated to regional employees

  • decisions devolved to branches that know customers better

  • loss of control

5
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size

a business expands and needs more employees

a business can downsize or delayer to:

  • reduce costs

  • improve efficiency

  • improve communication