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Organisational Structure - Business

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Kasia Organisational Structure. Organisational structure - a hierarchy chart which shows the arrangement of management, authority and communication; it also allocates and determines to which extent power, roles, responsibilities, duties and rights of the particular business or department are delegated; as well as how the information flows between the different levels of management. Organisational structure strictly depends on the business' objective and the strategy used to achieve that objective. In a centralized structure, the decision making power is located at the top of the chart, followed by tightly controlled departments and divisions. In a decentralized structure, the decision making power is distributed and departments and divisions have varying degrees of laws and autonomy. Layers of management - organisational structures who how clearly many different levels of management and departments there are in a business. Although having multiple levels of management in an organisation is beneficial because it helps the business run smoothly because the authority which is has the decision making power also has a group of managers that give instructions and responsibilities to the employees below them in such chart, however, companies that have many layers of management struggle a lot in comparison to those who use a flat management structures. ...read more.


This structure is also very clear and functions in a smooth manner, the lines of responsibility and control are clear. It is also easy for the employees to move up and down the promotion ladder, the progression is clear. However, A tall structure has a large number of manager which is a great expense because usually the business tends to pay its managers more than the layer below; as well as the information can take a long time to reach the bottom of the hierarchy because the decision needs to be approved by each layer of authority. Also, the freedom and responsibility of the managers and employees is restricted. Flat organisational structure will have a few or just one management layer, in comparison to tall organisation structure which will have a lot. This means that the chain of the command from the top to the bottom is short and the span of control is wide. This organisational structure is often used in small businesses. The communication between the workers and the managers is better and clearer and there is that healthy team spirit which is good for a pleasurable working environment. ...read more.


Horizontal decentralisation spreads the responsibility across the organisation, for example introducing a new technology across the business. ADV of centralised organisation: ADV of decentralised organisation: The senior managers enjoy a greater control over the business' actions, and in uncertain times the business might need stronger leadership skills and it is believed that leadership comes from the above. Senior managers can focus on the most important decisions as some jobs can be passed down the hierarchy. Standardised procedures can reduce costs. Decision making is a form of empowerment, which can be used for motivation and therefore increase the staff output. Decisions made can benefit the whole business, where as if a department manager decides on something, it might only benefit their department. Employees at the bottom at the hierarchy have a better understanding of the environment they are dealing with. This might be beneficial because they have a better understanding of the working environment than senior managers and the decisions made should suit them too. Greater expertise of more experienced senior managers. Empowerment will make it easier for the department and its employees to respond faster to changes and challenges, also empowerment makes it easier for people to accept and value success of more responsibility. ...read more.

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