Please enable JavaScript.
Coggle requires JavaScript to display documents.
Structures (Matrix Structure (Advantages (No need to fund the structure…
Structures
Matrix Structure
Used when the business is involved in a number of large projects
Teams are formed with staff from the majority of the functional departments
Advantages
No need to fund the structure permanently
Teams of different specialists provide a range of skills that can increase innovation
Disadvantages
Can be costly to set up and manage
Employees will have two managers
Tall Structure
Many layers of management within the business
Long chain of command and each manager has a narrow span of control
Advantages
Great control and supervision
Clearly defined roles
Staff will become experts in their jobs
Disadvantages
Communication can be slow
Vulnerable to changes in the market due to the inability to change quickly
Entrepreneurial Structure
One or two decision makers
Used in small businesses but also newspaper editing and money markets
Advantages
Experienced decision makers
Fast decisions
Disadvantages
No initiative from staff
Difficult to use in a large business
Stress on decision maker
Flat Structure
Fewer levels of management and a short chain of command
Advantages
Quicker for information to flow up and down the organisation
Gathering information and consulting staff takes less time
Disadvantages
Less management means there is less control
Mistakes are easier to make and harder to identify
Centralised Structure
All decisions are made in head office
Advantages
A standard method of operation is developed
Easier to promote a corporate culture/image
Disadvantages
Heavy reliance on key decision makers
Stifles creativity of the staff
Lack of decision-making powers demotivates staff