tall organisations
- many layers of management
- long chain of command
- promotional opportunities
- narrow span of control
flat organisations
- fewer layers of management
- shorter chain of command
- less promotional opportunities
- wider span of control
delayering
Delayering involves removing one or more levels of hierarchy from the organisational structure.
advantages of Delayering
- improves communication
- empowering and motivating
- reduces costs
disadvantages of Delayering
- may not be suitable
- redundancy lowers motivation
- increases manager workload
downsizing
Downsizing is when a firm closes down or merges aspects of their operations in order to:
- reduce costs
- remain competitive in the marketplace
centralised organisations
A centralised structure keeps decision making and authority at the top of the hierarchy, amongst the senior managers.
decentralised organisation
Decentralised organisations delegate decision making further down the hierarchy, away from the centre.
advantages of centralised organisations
- easier to implement policies
- easier to control
- quicker decision making
disadvantages of centralised organisations
- lack of authority lowers motivation
- staff not involved in decision making
- local decisions are slower
advantages of decentralised organisations
- involving staff can improve motivation
- more responsive to local changes
- good way to train junior managers
disadvantages of decentralised organisations
- delegating slows down decisions
- junior managers aren’t experienced
- decisions less strategic
matrix structure
In a matrix structure, individuals from different functional areas or departments come together to work in project teams.
advantages of a matrix structure
- improves communication
- allows employees to develop skills
- allows resource sharing
advantages of functional grouping
- brings together employee with similar skills
- less duplication of resources
disadvantages of a matrix structure
- divided loyalties
- team member may neglect their normal responsibilities
- heavy workload
disadvantages of functional grouping
- different group may not communicate well
- slow to respond to external changes
Disadvantages of Product/Service Grouping
- duplication of functions and resources
- managers strive to achieve divisional goals
Advantages of Product/Service Grouping
- easy to focus on specific market segments
- able to respond to market changes
Advantages of Customer Grouping
- more responsive to changing customer needs
- develops knowledge and expertise in the customer area
Disadvantages of Customer Grouping
- duplication of resources
- more difficult to share expertise
