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Organisational structure (different types of organisational structures (by…
Organisational structure
Delegation and accountability
Delegation
; passing authority down the organisational structure
advantages
gives senior management more time to focus on important roles
shows trust in subordinates, motivates and challenge them
develops and trains staff
helps staff to achieve fulfillment
encourages staff to be accountable
limitations
if task is not well defined or inadequate training, the delegation will unlikely to succeed
managers may only delegate boring jobs, not motivating
delegation will be unsuccessful if insufficient authority is given to the subordinate
Accountability
; the obligation of an individual to account for his or her activities and to disclose results in a transparent way
Delayering
removal of one or more of the levels of hierarchy
advantages
reduces cost
shorten the chain of command and improve communication
increases spans of control and opportunities for delegation
increase workforce motivation
disadvantages
making managers redundant
increased workloads
fear of cut costs, reduce the sense of security
Centralisation & decentralisation
centralisation
; keeping all important decision-making powers within head office or the centre of organisation
advantages
rapid decision-making
consistent policies throughout the organisation
senior managers take decisions in the interest of the whole business
greater economies of scale
senior managers at head office will be experienced decision-makers
decentralisation
; decision-making powers are passed down the organisation
advantages
more local decisions can be made
junior managers can develop skills
positive effects on motivation
decision-making in response to changes
different types of organisational structures
by product
advantages
allow a team to focus
having a senior executive
build a common culture with a higher morale and a better knowledge of the division's range of products
disadvantages
may compete with each other/reduce cooperation
compertmentalisation results in lack of coordination
by function
advantages
improve efficiency
employees can capatalise on their specialised skills
managers train and develop employees to be proficient
disadvantages
suggest that one-way communication is the norm
lack of coordination
become too focused on departmental objectives and not overall corporate aims
very inflexible, leads to change resistance
by region
advantages
communication between representative very direct and personal
encourage the formation of strong, collaborative teams that work effectively together
ability to recruit local management offers, leaders who are familiar with the local business environment
better decisions can result from managers who are aware of specific cultural factors
tracking the perfomance
disadvantages
duplication of personnel between head office and regional officers
conflict and unhealthy competition
difficult to be consistent
inconsistent company strategies