Types of Structure PDF

Types of structure Suggested activity – draw an organisational structure diagram for your life It is possible to draw a diagram of the employees in an Grandad organisation This shows everyone who Mum Dad works in the organisation, who they report to and who...

Types of structure Suggested activity – draw an organisational structure diagram for your life It is possible to draw a diagram of the employees in an Grandad organisation This shows everyone who Mum Dad works in the organisation, who they report to and who they are responsible for ME You can even draw one for your family or friendship group MY SISTER What does an organisational chart show? 1. Names of departments e.g. production, finance, marketing and HR 2. Job roles e.g. Directors, Managers, supervisors 3. Responsibilities and accountability e.g. definition of duties 4. Lines of authority (who is the boss) 5. Lines of communication flow (horizontal and vertical) in the organisation 6. Chains of command in the organisation Different types of organisational structure introduction There are three main types of organisational structure that you need to know for the Edexcel exam: 1. Tall Structure 2. Flat Structure 3. Matrix Structure You will not need to be able to draw them but you need to know the differences and which businesses they are most suitable for #1 Tall structure In a tall structure there may be lots of opportunities for promotion Information takes a long time to get from the bottom to the top of the organisation, it takes a long time for decisions to be made Work is shared among more people so less stress Everyone knows where they are in the hierarchy, so very orderly and organised #1 Advantages of a tall hierarchical structure In a tall organisational structure supervisors normally have a small span of control so they can get to know their subordinates really well Knowing subordinates means they can delegate the right tasks and make sure their team is well trained There are more opportunities in tall structures #1 Disadvantages of a tall hierarchical structure Lots of layers and a long chain of command can mean that the business is very inflexible It can also mean that communications within the organisation are slow This is an expensive way to structure a business as there are more managers and supervisors #2 Flat structure Many restaurants and web design companies have a flat structure. They have a wide span of control and a short chain of command so information flows quickly throughout the organisation. Manager Coach Chef Chef Bar Bar Waitress Waitress Cleaner Cleaner Bus Boy #2 Advantages of a flat structure In a flat structure there are fewer layers of hierarchy between the bottom and the top of the organisation, this may mean that communication is fast Lots of delegation means that staff are given greater responsibility, which might mean more opportunities to use their abilities #2 Disadvantages of a flat structure In a flat structure staff can become overstretched or overworked as there is less supervision, this can cause stress and be demotivating Can create a power struggle if the manager is rarely around as subordinates jostle for roles and responsibilities Wide span of control means managers have too many staff to manage and may lose touch with them #3 Matrix explained In a business where there is more than one product or more than one project running at a time a matrix structure is more suitable than a standard hierarchy Car manufacturers operate in this way, for example: Project 1 design of a new family car Project 2 design of a new sports car Project 3 design of a new 4x4 #3 Advantages of the matrix structure Matrix structure is ideal for a business that works on a project-by-project basis Very flexible structure means that staff from different departments can jump in and out of different job roles Perfect to exploit the specific skills of staff #3 Disadvantages of a matrix structure In a matrix organisational structure there may be possible co-ordination problems between departments Employees can have conflicts of interest across projects Staff can become stretched across different projects, not spending time in their own departments #3 Matrix structure Human Production Finance Marketing Resources Project 1 Project 2 Project 3