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The effect of structure on the culture of an organisation

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The effect of structure on the culture of an organisation The three types of organisational structures are: -Entrepreneurial (wide, flat span of control) -Hierarchical (narrow, tall span of control) -Matrix The entrepreneurial structure is often flat and has a less formal structure. Decisions are mainly based on decision makers and the managers may lose control over the group. It becomes hard to monitor individual's work and subgroups with unofficial leaders may emerge. The entrepreneurial structure is often used in small businesses when there is a relatively informal and relaxed work environment. The hierarchical structure is often taller and narrower than the entrepreneurial structure. ...read more.


Big businesses such as supermarket chains have a hierarchical structure because it allows there to be a head office but allows individual stores to listen to customers and allows each individual store to change according to the needs and wants of the populations. Tesco has a flat example of a hierarchical structure with only six levels between checkout staff and the chief executive. The matrix structure allows fast decision making but are less popular in large businesses. The matrix structure can encourage creativity and can improve communication between departments. Matrix structures involve people from many departments working together as a team on specific tasks and projects. ...read more.


The matrix management structure is more effective as bringing people together with diverse skills into project teams. Conclusion: There isn't any particular structure which is the best for all organisations. It depends on many other factors such as the size of the organisation, the type of organisation and the employees. I think the matrix structure is the best for global companies and those which include a lot of project and research based work. The matrix structure allows everyone to work with their own skill and will improve the efficiency of the company. I think the communication is probably the best in the entrepreneurial structure but the control is probably tightest in the hierarchical structure. ...read more.

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