Structures Flashcards
(15 cards)
What is an organisational structure?
It is the formal way a business arranges its staff and lines of authority, showing who is responsible for what and who reports to whom.
What is a hierarchical (or tall) structure?
A structure with many layers of management and a narrow span of control, where each employee has a clearly defined role and reports to a supervisor.
What are two advantages of a tall structure?
Clear lines of authority and promotion paths
Close supervision of staff due to narrow spans of control
What are two disadvantages of a tall structure?
Slower decision-making due to many layers
Can lead to poor communication and increased bureaucracy
What is a flat structure?
A structure with few levels of management and a wide span of control, encouraging more autonomy and faster communication.
Give two benefits of a flat structure.
Faster decision-making and communication
Staff feel more empowered with greater responsibility
What is a disadvantage of a flat structure?
Managers may be overstretched, leading to less supervision and potential for reduced productivity or discipline.
What is a matrix structure?
A structure where employees work across different departments and projects, often reporting to more than one manager.
Give two advantages of a matrix structure.
Encourages collaboration between departments
Makes best use of employee skills across different projects
Give two disadvantages of a matrix structure.
Conflicting instructions from multiple managers
Complex communication and confusion over responsibilities
What is an entrepreneurial structure?
A structure where decisions are made centrally by the owner or a small group, often used in small businesses.
What are the pros and cons of an entrepreneurial structure?
✅ Quick decision-making and strong control
❌ Can overload decision-makers and reduce innovation from employees
What is centralised decision-making?
All decisions are made at head office or by senior management, with little input from lower levels.
What is decentralised decision-making?
Decision-making is delegated to regional branches or lower levels of staff to improve responsiveness and motivation.
Why might a business change its structure?
To improve efficiency, adapt to growth, respond to competition, improve communication, or better serve customer needs.
