Flashcards in Understanding Business Deck (9)
Also called pyramid structure, In this type of structure decisions and instructions are passed down from the most senior staff of the organisation while information is passed back up so the higher up in the pyramid the greater responsibility they have towards the organisation
There are very few levels in the flat structure which has several benefits to the organisation, one being that communication and decisions will be passed around more quickly as there is less levels to go through.
Emphasises putting people together in project teams depending on what it is they specialise then meaning that every individual have there own functional responsibility
The control and the decision making sits with the most senior directors within the organisation the subordinates have little authority with decisions.
Decision making in this type of structure are made from the subordinates which allows the managers to not concentrate on the operational decisions and instead concentrate on the longer term decisions.
A long term decision which is made by senior managers
A medium term decision which is made by middle managers