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Organisational structures (Flat structure (short chains of command, wide…
Organisational structures
Flat structure
short chains of command
wide spans of control
few levels of hierarchy
An organisational structure are the internal links between managers and workers, showing the lines of authority
span of control is the number of junior employees each manager is directly responsible for.
layers of management (authority) is the number of different levels of management and responsibility in a structure
centralisation is where senior managers take all important decisions
advantages
senior managers have full control
strong leadership and quick decisions in a crisis
decisions are taken for the benefit of the whole company
disadvantages
staff ideas and needs/wants may not be listened to
decentralisation is where decision making power is spread to managers in branches and divisions in the business
advantages
gives power to junior managers and may motivate them
local managers may have better experience and knowledge
junior managers are given experience of decision making which will prepare them for promotion
disadvantages
training needed to use power effectively
poor decisions might damage the whole business
tall structure
many levels of hierarchy
long chains of command
small spans of control