Structure

• Tall and flat organisations

  Tall/Hierarchical Organisations

  • Many layers of management
  • Long chain of command
  • More promotion opportunities
  • May have a narrow span of control
  • Slower to respond to changes
  • Managers may be more autocratic or bureaucratic
• Delayering

  Delayering involves removing one or more levels of hierarchy from the organisational structure.
• Downsizing

  Downsizing is when a firm closes down or merges aspects of their operations in order to:

  • reduce costs
  • rremain competitive in the marketplace
• Advantages of delayering

  • It offers opportunities for better delegation, empowerment and motivation as the number of managers is reduced and more authority passed down the hierarchy.
  • It can improve communication within the business as messages have to pass through fewer levels of hierarchy.
  • It can reduce costs as fewer (expensive) managers are required.
  • It brings managers into closer contact with the business’ customers – which should (in theory) result in better customer service
• Disadvantages for delayering


  • Not all organisations are suited to flatter organisational structures - mass production industries with low-skilled employees may not adapt easily
  • Delayering can hurt motivation due to job losses, especially if it is just an excuse for redundancies
  • Disruption may occur as people take on new responsibilities and fulfil new roles
  • Those remaining managers will have a wider span of control which, if too wide, can damage communication within the business
  • There is also a danger of increasing the workload of the remaining managers
  • Delayering may create skills shortages within the business
• Centralized management structure


  A structure where all decisions are made by senior managers
• Decentralized management structure


  Decisions are made at the most appropriate level in the business
• The success of a management structure is not determined by the structure chosen, but how it is implemented and managed
• Clever management can combine centralized and decentralized approaches to get the best of both worlds
• Flat Organisations

  • Fewer layers of management
  • Shorter chain of command
  • Fewer promotion opportunities
  • May have a wider span of control
  • Faster communication
  • Employees may feel more empowered