Core 1- Business structures

Flat

Cost-efficient

Faster decision making

short chain of command

requires less management supervision

Hierarchal

Narrow spans of control

Clear management structure

Possibility of promotion

Each layer is clear and distinct

Little freedom for employees

Slow decision making

high management costs

Flat

Cost-efficient

Faster decision making

short chain of command

requires less management supervision

Hierarchal

Narrow spans of control

Clear management structure

Possibility of promotion

Each layer is clear and distinct

Little freedom for employees

Slow decision making

high management costs

Functional

Specialisation can offer a higher level of expertise

coherent pathway for staff

Departments may no co-operate well with each other

Departmental goals become the focus at the expense of organisation-wide goals

Communication difficult between departments

Divisional

Retains Specialism of workers

increased flexibility to respond to particular market conditions

common customer focus helps internal relations

Inter-divisional rivalry/conflict

risk of duplicating effort and resources

Matrix

Teams are able to form and disband as required

Helps communication and the sharing of knowledge

flexible to support growth

Possible lack of clarity with dual reporting system

complex reporting network

teams become too independent and don’t collaborate

management has an increased workload