UB - Structures

Question 1

Tall structure - advantages

Answer 1

• each staff member knows role and who to report to
• many levels brings promotion opportunities, motivation
  NARROW SPAN OF CONTROL
• more time for planning
• more time for decision making
• can support subordinates

Question 2

Tall structure - disadvantages

Answer 2

• communications inefficient to flow throw levels which slows decision making
• slow to react to changes in the market
  NARROW SPAN OF CONTROL
• managers supervise closely, pressure
• managers have fewer staff to share ideas

Question 3

Flat structure - advantages

Answer 3

• information communicated quickly between levels
• can respond quickly to PESTEC e.g. competition
  WIDE SPAN OF CONTROL
• delegate more making staff feel trusted
• staff feel empowered to make decisions themself

Question 4

Flat structure - disadvantages

Answer 4

• fewer levels means fewer promotion opportunities
• managers delegate more, pressure
  WIDE SPAN OF CONTROL
• subordinates have no one to get help from
• less time for planning
• managers time at premium, snap decisions

Question 5

Tall structure - definition

Answer 5

• pyramid shape, command flows top to bottom
• many levels of management
• suits large organisation

Question 6

Flat structure - definition

Answer 6

• pyramid shaped, command flows top to bottom
• fewer levels of management than tall structure
• suits small to medium sized organisations

Question 7

Delayering - definition

Answer 7

• removing one or more levels of management from a tall structure, making it flatter

Question 8

Delayering - advantages

Answer 8

• money saved on paying salaries of level removed
• quicker decision making as shorter chain of command
• more responsive to changes, fewer levels to go through
  WIDE SPAN OF CONTROL
• delegate more making staff feel trusted
• employees feel empowered to make own decisions

Question 9

Delayering - disadvantages

Answer 9

• fewer promotion opportunities for staff
• redundancy payments
• lose key members of staff
  WIDE SPAN OF CONTROL
• subordinates have no one to get help from
• less time for planning
• managers time at premium, snap decisions

Question 10

Centralised - definition

Answer 10

• decision-making/control kept at top

- even if lots of branches, head office decides

Question 11

Centralised - advantages

Answer 11

• standardised procedure = consistency
• low risk of info leaking
• good corporate identity/strategy as decisions for whole organisation

Question 12

Centralised - disadvantages

Answer 12

• less responsibility for subordinates = demotivated
• needs of local market ignored
• slow response to PESTEC - local competition

Question 13

Decentralised - definition

Answer 13

• decision making/control delegated to individual branches
• overall strategy centralised but local products/advertising decentralised
• best in retail chains with different local markets

Question 14

Decentralised - advantages

Answer 14

• quickly react to PESTEC
• quick decisions as local managers don’t need to consult senior managers
• subordinates empowered = creativity
• senior managers at head office don’t have constant decisions

Question 15

Decentralised - disadvantages

Answer 15

• additional training needed for middle managers
• lose overall corporate image if branches different
• local branches compete with each each other
• lower-level management make decisions harmful to whole business

Question 16

Matrix - definition

Answer 16

• arranged into temporary project teams for different tasks
• employees from different departments - marketing, R and D etc.
• two managers per employee - manager of functional area + project manager

Question 17

Matrix - advantages

Answer 17

• specialist staff
• complex problems solved
• staff use expertise and feel useful

Question 18

Matrix - disadvantages

Answer 18

• lots of managers in teams, wage costs
• duplication of resources - admin staff, equipment
• confusion over who to report to

Question 19

Entrepreneurial - definition

Answer 19

• used by small organisation with a main decision-maker

- other staff have input but rarely consulted

Question 20

Entrepreneurial - advantages

Answer 20

• quick decisions as little consultation
• staff know who to report to
• high-quality decisions made as decision-makers experienced

Question 21

Entrepreneurial - disadvantages

Answer 21

• creates heavy workload for main decision maker
• if owner busy or unavailable key decisions can’t be made
• other staff can’t show initiative, stifling creativity and demotivating