Organisational design

• Centralised business = where business decisions are made at the top of the business or in a head office and distributed down the chain of command
• Decentralised business = where a business allows decisions to be made by managers and subordinates.
• tall structure = layers of many leaders and management.
• Flat structure = few levels of leadership, more employees have direct contact with senior management.
• Matrix structure = combines elements of both tall and flat structures.
• Tall organisational structure Advantages:

  • Provides a clear hierarchy of authority and defined roles and responsibilities
  • Promotes specialisation and expertise within each department or function
  • Offers opportunities for career advancement and promotion within the organization
  • All of the above increases efficiency and motivation
• Tall organisational structure disadvantages:

  • Can create communication barriersbetween the upper and lower levels of the hierarchy
  • Decision-making can be slow as information must pass through multiple layers of management
  • This can lead to bureaucracy and excessive levels of management
  • All of the above reduce efficiency and motivation
• Flat organisational structure advantages:

  • Promotes a culture of collaboration and open communication
  • Decision-making can be faster and more efficient
  • Encourages creativity and innovation, as employees have more autonomy and flexibility
  • All of the above increases efficiency and motivation
• Flat organisation structure disadvantages:

  • This can lead to role ambiguity and a lack of a clear hierarchy
  • May not provide clear opportunities for career advancement or promotion
  • This may require employees to take on multiple roles and responsibilities leading to burnout and overwhelm
  • All of the above reduce efficiency and motivation
• Matrix organisational structure Advantages:

  • Promotes cross-functional collaborationand communication
  • Allows for specialisation and expertise within each functional area
  • Enables efficient allocation of resources and coordination of multiple projects
  • All of the above increases efficiency and motivation
• Matrix organisational structure disadvantages:

  • This can lead to conflicts over priorities and resources
  • This can create confusion over roles and responsibilities particularly when multiple managers are involved
  • Requires a high degree of communication and coordination, which can be challenging
  • All of the above reduce efficiency and motivation