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ORGANISATION STRUCTURE - Coggle Diagram

- - - - One-way communication is the norm
      - Few horizontal links between departments
      - Inflexible --> Change resistance
    - - The role is clear and well defined
      - Clearly identifiable chain of command
      - Do not have to be based on functional departments
  - - - Less direct control from the top
      - Passing down authority to junior staff could be difficult
      - Team members may have conflict of interest
    - - Allows total communication between all members of the team
      - Less chance of focusing on own departments
      - People from different areas tend to create more successful solutions
- - - - Show trust in subordinates
      - Develops and trains staff for more senior positions --> achieve fullfilment (Herzberg)
      - Give managers more time to focus on important roles
    - - Insufficient authority given can lead to unsuccessful delegation
      - Managers may only delegate boring jobs
      - If tasks not well-defined --> delegation is unlikely to succeed
  - - - Prevents conflicts between divisions and avoids confusion in the minds of consumers
      - Senior managers take decisions in the interest of the whole business
      - A fixed set of rules in all areas --> little scope for discussion --> rapid decision-making
      - Central buying --> economies of scale
    - - More junior managers can develop and this prepares them for more challenging roles
      - Delegation and empowerment are made easier
      - More local decisions can be made that reflect different conditions
      - Responding to changes is quicker and more flexible
  - - - Has a large number of levels of hierarchy
      - Communications can become slow
      - Greater sense of remoteness, decision-making power at the top
      - Span of control is narrow
    - - Wider span of control
      - Effective communications (two-ways)
      - Few levels of hierarchy
      - Less sense of remoteness
  - - - Reduce business cost
      - Shortens the chain of command --> improve communication
      - Increase span of control --> opportunities for delegation
      - May increase workforce motivation
    - - Increase workloads for managers who remain
      - Fear that redundancies might be used to cut costs could reduce the sense of security
      - Could be one-off costs