organisational structure Flashcards
(10 cards)
what is a tall heirarchal structure
tall heirarchail structures have a small span of control and a large chain of command
there is lots of layers of managment which decisons pass through
managers look closely over workers in below levels- monitor, small amount high focus on workers
what is a flat heirarchial structure
this has a smaller chain of command and a wide span of control
there isnt lots of middle management instead managers manage lots of workers less control and focus on what they are doing
less layers that decison making must go through
what is a matrix heirarchial structure
this is where each department of a business is divided to complete part of a project, 2 managers, managers of the depeartment and managers of the project they are taking part in
enables specialists to work together in project teams
each team will have own responsibility as part of the project
all work togther to achieve a specific objective
advantages and disadvantages of a tall heirarchail structure
+ higher focus on workers as managers have less workers to focus on, more direct guidence and support
+ lots of levels of managment may motivate workers as there is a chance for career progression and advancment
+ control is at the centre, senior managemnt understand who does what and what their responsibilities are
+ paths of commmunication and responsibility clearly defined
+ workers understand their ro;es and responsibiles limiting confusion
+ has to go through many levels of agreement and managers to make a decison ensuring that no poor decison sare made
+ managers and employees focus ona specific task and develop expertise .
disadvantages
- communication may become distorted or misunderstood as it messages are passed through many chains of command
- managers may only recieve messages when they are out of date leading to ineffieicneys
- managers and workers may feel demotivated as they feel they arent noticed by higher management
- slow decision making as it must pass through multiple layers which isnt effieicnet if working in a fast paced market where things chnage quickly and need to adapt to changes
- may feel less motivated as have less responsibility as senior managment dont need to delegate responsibility to workers
- feel less empowered voices and ideas not heard by senior management
advantages and disadvantages of a flat heirarchail structure
+ managers may feel more noticed as they are closer in communication to senior mamanegment
+ communication likely to be relitevely good as not large chain of command, info less distorted
+ workers feel more empowered and recognised increasing motivation
+ able to adapt to change quicker
+ managers may feel mmore motivated as they have more resposnibility as tasks from senior managemnt are delegated
disadvantages:
- may feel demotivated if feel arent recognised as much by managers
- may be more confusion of their role as there is less of a set responsibility, harder to see where they stand, may lead to inefficinecys
-less oversight of employees work, could lead to inconsistent work quality
- managers have a higher workload may feel burnt out
- employees may feel much harder to recieve a higher role in senior managment
works better in smaller businesses but will become inefficient as business grows
advantages and disadvantages of a matrix heirarhcial structure
+ encourages collaboration and knowlege sharing, good communication
+ project better coordinated
+ helps ideas and innovation spread through business
+ able to gain skills in multiple areas, increase skill development, carrer opp’s
+ brings experts from different areas together leading to better decision making
disadvanatges:
- may struggle from different demands from different managers
-may lead to clash of cultures as different departments my operate differently
- slows decison making as have to report to 2 managers
- may cause confusion when there is 2 magaers can report to
centralisation v decentralisation
centralisation- decision making kept to top level of organisation, small amounts of delegation ( tall strucutre, narrow span of control )
decentralisation- decision making spread through organisation , taks are delegated to lower levels of heirarchy, flat strucutre fewer layers and wider span of control
factors whiich determine the type of srcuture
- management style, democratic ( flatter )or autocratic ( taller)
- industry, retail, banking- tall ( car manufactuers, supermarkers )
- new tech start ups, new e- commerce start ups, SME’s - flatter
- matrix, media, engineering, pharmicatical
- skills of workforce
more skilled less need for supervision, flatter
what does span of control depend on
- personality
- skills
- management
- experience
- centralisaed or decentralised
impact stakeholders flatter structure
A flatter organisational structure has a hierarchy with relatively few (or no) management
layers. It can be achieved through a process of delayering.
* Managers – a flatter organisational structure can lead to managers having a wider span of
control and increased responsibility for people and an increase in workload. However,
managers could feel more challenged and motivated by the extra responsibility and can gain
experience. Opportunities for further progression could be limited.
* Owners – a flatter organisational structure could result in considerable cost savings in terms
of salaries. This means that profit could increase, which could be distributed to
owners/shareholders or be retained/invested in the business. However, the owners of the
company might suffer from a bad reputation and customers might go elsewhere. Initially, this
process can be costly to implement if high redundancy payments have to be met and existing
staff have to be trained to cope with extra responsibilities.
* Employees and Managers - communication may improve because of the flatter
organisational structure, but workload can increase as managers delegate more
responsibility to subordinates. Could lead to some managers and employees being
overburdened as they have to take on more subordinates, leading to demotivation and a loss
in productivity. Labour turnover could increase.
* Employees – could lose jobs depending on how the flatter organisational structure is
achieved. Job security and motivation for remaining employees might be affected. Some
employees will be eligible for a new job in the business if new roles are created as a result of
the restructure.
* Employees - some staff may now be empowered to make their own decisions and this could
be motivating for them, however, employees who remain may become demoralised and
fearful that their job may be the next to go.
* Competition – a flatter organisational structure could make a business more efficient
because of its lower cost base and improved communication and control functions, therefore
resulting in a competitive advantage, especially if a business passes the cost savings on to
customers in the form of lower prices. Competitors could recruit the staff that lose their jobs
as a result of a restructure/delayering.
* Suppliers – flatter organisational structure could affect communication and efficiency with
less staff in the business to deal with suppliers. However, suppliers might benefit from
streamlined processes with businesses and more orders if they are able to attract more
customers because of lower prices.
* Customers – could benefit from savings if efficiencies are passed on to customers in the form
of lower prices. Depending on the way the organisation becomes flatter, customers may
experience increased waiting times and a decrease in service/product quality if employees
are not supervised effectively.
* Government – if employees cannot find employment after being made redundant, then the
government loses out on tax and increased benefit payments will need to be made. This
depends on the number of staff that lose their jobs and whether they are able to find another
job.
Internal stakeholders might be affected more than external stakeholders. Those who are affected
the most would be dependent on their current job role and their position in the company. A flatter
organisational structure might be necessary for a business’s long-term survival and success.
