Types of Organisational Structure

Types of Organisational Structure

• Organisational charts visualize employee roles, reporting structures, and responsibilities within a company or group.
• Charts show departments (e.g., production, finance, marketing, HR).
• They depict job titles (e.g., Directors, Managers, Supervisors).
• Charts outline responsibilities and duties.
• Charts illustrate lines of authority (who reports to whom).
• Charts display communication flow (vertical and horizontal).
• Charts show chains of command.

Suggested Activity

• Create an organisational structure diagram representing your personal relationships (family, friends).
• Draw a diagram illustrating the roles and reporting structures within a team, club, or organisation.

What Does an Organisational Chart Show?

• The chart displays departmental names (e.g., production, finance).
• It shows job roles (e.g., managers, supervisors).
• The chart outlines responsibilities and accountabilities.
• It depicts lines of authority (who is in charge).
• The chart illustrates communication flows (who communicates with whom).
• It shows chains of command (who is at the top).

Different Types of Organisational Structures

• Common structures include Tall, Flat, and Matrix.
• Understanding these structures is crucial for the Edexcel exam.
• Drawing the structures is not required; understanding the differences is essential.

Tall Structure

• Tall structures offer numerous promotion opportunities.
• Decision-making processes can be slow due to multiple layers of hierarchy.
• Workload is distributed among many individuals, reducing stress on any one person.
• Clear hierarchical structure promotes order and organization.

Tall Structure Advantages

• Supervisors have a narrow span of control, allowing them to develop strong relationships with subordinates.
• Subordinates can be effectively mentored.
• Tasks are well-defined and delegated, leading to a well-trained team.

Tall Structure Disadvantages

• Multiple layers create a lengthy chain of command, hindering quick decision-making.
• Communication flow can be slow and inflexible.
• Extensive layers increase management and support staff costs.

Flat Structure

• Flat structures are common in fast-paced environments, such as restaurants and web design companies.
• Information flows rapidly. This structure is efficient.
• Fewer levels result in quick communication.
• Wide delegation promotes greater employee responsibility.

Flat Structure Advantages

• Fewer layers expedite communication between top and bottom levels.
• High delegation levels empower staff with greater job responsibility.
• Many opportunities for staff to showcase their talents.

Flat Structure Disadvantages

• Managers may struggle to oversee a large number of employees.
• Staff may feel overwhelmed by a lack of direction or support.
• Conflicts of interest may arise related to responsibilities or roles, as managers are rarely present.

Matrix Structure

• Matrix structures are ideal for companies with multiple projects or products simultaneously.
• It allows staff to contribute to multiple tasks across different areas or departments, utilising their skills.
• It enhances efficiency and agility.

Matrix Structure Advantages

• Very flexible in terms of how staff are assigned among projects or departments.
• Specialised skills can be used effectively.

Matrix Structure Disadvantages

• Conflicts may emerge between employees or departments due to responsibilities across projects.
• Staff may feel stretched across projects and lose focus within their departments.
• Co-ordinating projects can be complex and difficult.