Organisation Structures

Organisation Structures

Implications of organisational structures

Tall:

  • Span of control small, tighter control over subordinates making more easily supervised
  • Creates clear route for promotion acting as a motivator
  • Long chain of command creating poor communication
  • Messages distorted slowing down decision making
  • Leave unsatisfied customers

Flat:

  • Better communication due to short chain of command
  • Management costs are lower
  • Decision making faster
  • Empowered staff due to greater responsibility
  • Managers lose control
  • Discipline may lack
  • Negative impact on productivity

Matrix:

  • Expertise and skilled workers being productive
  • Motivation increase
  • Flexible and fluid workforce
  • Expensive due to extra staff
  • Problems with coordinating departments
  • Decision making can be slow