Organization structures

• A tall organization structure is a structure with multiple levels of management, typical for large and complex organizations, allowing for more chance of promoting but expensive for business to have a lot of different positions with responsibility
• The flat structure has fewer layers between employees and senior managers, allowing for more direct communication and decision making.
• Delegation- The act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project or job role.
• Delayering- is reducing the number of levels in the hierarchy of an organization.
• Centralised Structure- Is associated with autocratic leaders who wants to keep control of the firm. They make all the final decision
• De-centralized structure-Allows the decision- making to take place away from the head office. Allows workers to be more motivated
• Matrix Organisation- Matrix organisations are made up of two dimensions; functional departments (vertical) and projects/products (horizontal). Employees work on multiple projects simultaneously.
• Chain of Command

  The link in the levels of authority from those at the top with the most authority, to those at the bottom with the least
• Span Control

  Number of subordinates (people underneath) who report directly to the line manager
• Tall organisational structure

  A structure with multiple levels of management, typical for large and complex organisations
• Flat or horizontal organisation structure

  Is one with few levels of hierarchy, typical for small businesses
• Advantages of a flat structure

  • Feels more involved in the company and decision making
  • Communication not lost of distorted from top to bottom of hierarchy
  • Empowering, people feel in control, works well with "work from home" and flexibility
• Disadvantages of flat structure

  • Can be confusing about who to speak to, difficult to always have "access" to line manager
  • Less chance of promotion
  • Workers must be motivated, highly skilled, doesn't work in all types of organisation
• Advantage of tall organisation structure

  • More layers equals more chance of promotion
  • Clear communication with direct line manager
  • need for leadership and guidance so people know what to do and are motivated
• Disadvantages of tall orgnaizational structure

  • Communication can be lost if passed down through layers
  • Expensive for business to have a lot of different positions with responsibility
• Delegation

  The assingment of any authority to another person (manager to subordinate) to carry out specific activities
• Delayering

  Reducing the number of levels in the hierarchy of an organisation
• Advantages of centralised structure

  • Decisions are quicker
  • In event of crisis, there will be strong leadership
  • less duplication of resources, which may reduce costs
• Disadvantages of Centralised structure

  • Decsions are made without the benefit of local knowledge
  • Lack of involvement in the decision making process is demotivating
  • Experts in a region may be ingored, resulting in mistakes
• Advantages of Decentralized structure

  • Being able to make a decision is a motivator
  • Local regions or areas are better informed for some decisions.
  • This will mean there are opportunities for local initiative to be used
• Disdavntages of decentralized structure

  • Some decisios made at regional or product level may be appropriate for that region but not for the business
  • Duplication of resources occurs
  • Consumers may not recognize the corporate identity
• Advantages of delayering

  • improve communication within the orgnization
  • Reduce cots
  • Offers opportunities for delegation
• Disadvantages of delayering

  • A period of disruption may occur as people take new responsibilities
  • Have a negative impact on motivation due to job losses
  • The remaining mangers will have a wider span of control, so communication might be damaged