4.1b Organisation Structures
Communication
A business must communicate with staff at all levels of a hierarchy, usually through:
- Meetings
- Emails
- Written letters and memos
- Video or audio conferencing
An organisation’s structure can affect the effectiveness of communication
Downward communication goes from senior to junior staff
Upward communication goes from junior to senior staff
Horizontal communication goes across a single level of hierarchy
Communication in Flat Hierarches
Downwards and upwards communication is simple because there are fewer levels of the heirarchy for messages to be passed through.
Horizontal communication can be difficult because their are many staff to distribute the message to.
Communication in Tall Hierarches
Downwards and upwards communication can be difficult because there are many levels of the heirarchy for messages to be passed through.
Horizontal communication is easy because there are fewer staff on each level.
Centralisation and Decentralisation
Centralised Management Structure
All business decisions are made at the top of the business in the head office.
Decisions are controlled by a few senior managers, giving consistency and focus across the whole business.
There is a clear chain of command - everyone understands who is responsible for decisions.
Staff may feel remote or left-out of decisions, leading to demotivation and lower productivity.
Slow reaction to changes in local market conditions.
Decentralised Management Structure
Business decisions are shared-out further down the chain or in local branches.
Staff can feel empowered, increasing motivation and productivity
Quick reaction to changing market conditions
Greater understanding of the local market and how to capitalise on it
Inconsistencies may arise across the business
May lack specialist knowledge or management skills
Decision-makers may not see the overall company needs
Decisions on Structure
How does a business decide on its structure? There are many different considerations which are dependent on the needs of the business. A businesses structure will probably change as it grows or reacts to market conditions.
Smaller businesses – fewer employees, flat structure
Larger businesses – more employees to manage, additional layers of management added, so the structure becomes taller
Delayering – removing layers of management if a structure becomes too tall / has too many managers
4.1a Organisation Structures
4.2 Recruitment and Selection of Employees
