organisational structure

• Centralised structure


  an organisation where most decisions are made at head office not within the branch.
• Decentralised structure 


  an organisation that allows staff to make decisions at a local level
• Flat structure 


  an organisation with few layers of hierarchy
• Hierarchical structure 


  an organisation with many layers of management, therefore creating a tall organisational pyramid.
• Organisational chart


  a diagram that shows the internal structure of an organisation
• Span of control 


  the number of people a manager is directly responsible for in an organisation
• Subordinate 


  the term for people underneath another in an organisation chart
• tall hierarchical structure 


  benefits

  • regular promotion opportunities
  • easier to maintain standards / check everyone's work

  drawbacks

  • hard to communicate between lower and higher level
  • decision making may be slow due to many layers
• flat structure 


  benefits

  • fewer managers needed
  • workers have more responsibility

  drawbacks

  • each manager is responsible for more people
  • fewer promotion opportunities
• centralised structure 


  benefits

  • decisions taken with an overview of the whole company
  • consistent policies and decisions

  drawbacks

  • reduces delegation, so local managers cant respond to changes quickly
  • less job satisfaction