• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Organisational Structure - Business

Extracts from this document...


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Business Studies Edexcel Coursework

    come for a repair, but notice useful in-car products on sale/valet car washing and perhaps purchase them). Owners of these cars would also want quality service, and if Errol happens to specialise in a make such as those mentioned, these customers would read about it.

  2. Functional Areas Report

    Video communication Tesco will use Video conferencing as Video conferencing allows people in different parts of the world to see and talk to each other without the expense of travelling to a meeting. Specialist video conferencing equipment can be purchased or hired form specialist firms.

  1. Business Studies

    worse > The manager may decide to; - Impose a credit limit to customers - Make a more careful check on credit ratings - Send regular reminder notices for overdue accounts - Reduce time allowed to pay accounts - Refuse credit to lose that have bad credit history - Offer

  2. Business Plan. After putting a lot of thought into what kind of business we ...

    The bank play a vital role in the start up of my business as without a loan I would not be able to purchase my initial stock or the actual vending equipment. If a bank thinks that my company is not profitable enough they will not want to invest due

  1. Is it a sound business decision to locate a Coffee Republic franchise in Finchley ...

    so they have access to a lot of disposable income to spend on indulgences. www.upmystreet.com Secondary Qualitative - As it shows the competition near to Finchley Central. I gathered this data by typing in the local postcode (N3) into the website along with 'coffee shops' so I could get all coffee shops and caf�s in the area.

  2. Business Studies- Unit 1- Organisational Structures

    Another advantage is that the team resources are very flexible and specialists within this structure can be interchanged between roles very easily. This motivates and satisfies employees as it provides an opportunity for employees to pursue their skills. This advantage is also advantageous to the business because it maximises the

  1. How Sainsburys have adapted to their business environment

    Its considering the franchising scope followed the step taken by its French competitor Carrefour. Franchising will help Sainsbury to reach a broader customer base and reach further corners which is no possible through direct acquisitions and mergers. Further, acquisitions involve managerial constraints which can be easily avoided in case of franchising.

  2. Analyse the relationship between job roles, functions and an organisations structure, using appropriate illustrative ...

    Stebbings Flat Structure: Stebbings has a flat structure it is small compared to Tesco?s tall structure; Tesco has more functional areas than Stebbings which has less functional areas in compared to Tesco. Stebbings is a local business which has a flat structure with only a few levels of management which tells us the most senior person in the structure.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work