What is a centralised structure and when is it used?
A structure that has a few people at the top of the hierarchy who make all the important decisions in a business. Used in fast-food businesses.
Benefits:
Usually have consistent decisions
People at the top usually have the most experience and expertise
Drawbacks:
Decision making can be slow
People at the top can be less involved in work, meaning they could make poor business decisions
People at the top are unlikely to have specialist knowledge
What is a decentralised structure and when is it used?
A structure where decision-making responsibilities are delegated by the top management to middle and lower level managers in the business. Used in major supermarket chains.
Benefits:
Decisions can be made faster
Decisions are made by people who have specialist knowledge
Drawbacks:
May have inconsistent decisions made
Some decisions may not be aligned with overall aim or objectives with the business
What is a hierarchal business structure and where is it used?
A tall business structure with a long chain of command. Usually, each manager has a smaller span of control, but lots of people are managers. Used in Tescos.
What is a flat business structure?
Opposite to hierarchal, there are fewer layers in the organisation. This means that managers have a larger span of control.
