LO3

• Flat Structure- a company structure containing few levels
• Hierarchal/ tall structure- a pyramid shaped structure with many levels
• Centralised Structure- a structure where decision making is kept at the top of the hierarchy
• Decentralised structure- a structure where decision making is more spread out and filtered down the hierarchy
• Matrix Structure- where employees are grouped by function and product/ project
• Accountability- the responsibility that someone has actions that are carried out
• Chief executive- assigns duties to employees, explaining how these are to be carried out
• Directors- decide what work needs to be done to meet department aims and objecitves
• Managers- lead and develop a business's long-term strategy
• Supervisors- oversee a department, ensuring the company's policies are implemented
• Assistant/ operative - complete tasks as directed
• Delegation- entrust (a task or responsibility) to another person, typically one who is less senior than oneself
• Span of Control- how many people you are responsible for in the organisation
• Chain of Command- the system in the organisation where instructions are passed from one person to another
• Empowerment- a management practice of sharing information, rewards and power with employees. This puts them at heart of the organisation by giving them power and autonomy
• Advantages of a flat organisational structure

  • Communication flow is good as information can be passed on more accurately
  • Due to the wide span of control employees may be empowered and have more freedom and responsibility
  • Greater interactions between top and bottom levels of the hierarchy due to less levels
  • Authority is delegated to employees so decisions are made quickly
  • Fewer management levels keeps staff costs down
• Disadvantages of a flat organisational structure

  • Wider span of control may mean that employees at the bottom level are not supervised closely which could lead to mistakes
  • Time consuming role for managers due to having lots of employees to manage
  • Fewer levels means there could be less opportunities for promotion and ambitious employees could leave
• Advantages of a tall/ hierarchal organisational structure

  • Everyone knows their job roles and who to report to
  • Managers are less overwhelmed
  • Tighter control and supervision due to managers having fewer employees to manage
  • Greater opportunities for promotion due to the number of management positions and this could be motivating
• Disadvantages of a tall/ hierarchal structure

  • Long chain of command may lead to poor communication such as distorted messages
  • Decision making may take longer as approval may be needed at each level
  • Management cost will be higher
  • Some employees may become demotivated due to lack of freedom
• Advantages of a matrix organisational structure

  • Can help to improve flexibility of employees
  • The team has a particular focus enabling them to meet the needs of the customer better which leads to an increase in customer satisfaction
  • Teams can be removed when a project is complete without disruption
  • Greater motivation among team members as they have the opportunity to contribute their ideas as they work together
• Disadvantages of a matrix organisatinal structure

  • Having two managers is costly which reduces profitability
  • May be difficult to co-ordinate a team from different departments
  • Team members may not know who their immediate line manager is leading to miscommunication
  • Can be difficult to balance time between project and non- project work
• Centralised organisational structure

  • Responses to problems can be acted upon quickly
  • Decisions are made by experts trained in the role so less mistakes will be made
  • Senior managers can make decisions from the point of view of the business as a whole
  • Procedures can be standardised across the business
• Decentralised organisational structure

  • Provides subordinates with greater job satisfactory by giving them more responsibility and a say in decision making
  • Quicker response to customer feedback as subordinates may have more contact and so understand their wants and needs
  • For a business with branches in different locations decisions can be made to satisfy local demands, increasing customer satisfaction and improving competitiveness
  • Reduces stress and the burdens of senior management and frees time for them to focus on long term tasks
• Wide span of control

  • More responsibility is given to each manager
  • Appropriate for senior managers who believe workers should be more involved in decision making
  • There should be quicker communication through the business as there are fewer layers pass through
  • Training costs will be lower as workers will not be involved in making decisions
• Narrow span of control

  • Easier to control fewer staff so manager can closely monitor quality
  • Workers may need training to take responsibility which may increase their motivation
  • Appropriate for managers who believe that workers need to be controlled and told what to do
• Command status- The downward flow of the chain of command which relates to who a particular employee can give instruction to
• Reporting status- The upwards flow of the chain of command which relates to who a particular employee must report to
• Subordinate- Members of staff below a manger in the chain of command
• Responsibility- The particular task or set of tasks given to a particular job role that must be complete. This cannot be delegated.
• Authority- The right and ability to carry out take and make decisions