Circular Organisational Structure.. Standard Circular Organisational

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Circular Organisational Structure Standard circular organisational structure shows the business CEO in the centre and all the key management and staff positions reporting directly to him/her. This is an advantage as it means that if the CEO decides to make any modifications in the procedures of the company, they have the power and choice to decide if they wish to inform all the appropriate people who report to him because of his/her decision. However, it could also be a disadvantage on the CEOs part because not everyone is on the same page in terms of coordinating what must be done to strive the business forward.
A good way to overcome problems like this is to have a circular organisational structure where all functional management …show more content…

It is quite a centralised system with the majority of the decision making taking part at the top of the business. This is definitely seen in the top 3 layers. We can deduct from the diagram that the decision making is passed down the hierarchy with each layer having more people to command and this may mean that information passed from the top may be tampered with or lost easily and this is a disadvantage. Furthermore, it will be very hard for the manager of each department to keep track on everything their employees are doing and this may lead to a fault somewhere in the system. There is a lot of chance for promotion in the lower part of the structure but as you get higher and higher in the ranks it becomes increasingly harder to get promoted due to smaller amount of management this also makes the chain of command very long.
The Managing Director is presented at the top of this pyramid as he is at the top of the hierarchy and has set the agenda for the business or in this case factory. There are 7 layers in this pyramid which means information won’t be passed around effectively and there are 6 below the MD and the first line consists of all the directors of each department and most don’t have major teams to manage apart from the Manufacturing Director as this is the key area of the automobiles. The second line consists

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