Establishments have several options of organisational structures to choose from when planning the structure of the business. According to Pilling et al. (2010), the organisational structure refers to the arrangement of their resources which enable them to carry out their activities. It is believed that the flat and tall hierarchical structures are two of the most recognised structures. Furthermore, it is agreed that the tall hierarchical structure is more commonly used by massive organisations (Griffin, 2016; NI Business Info, 2016). The number of management levels determines whether a business is a flat or tall structure; the tall structure has many levels of management and a long chain of command whilst the flat structure has relatively few levels of management (NI Business Info, 2016). Using this structure is more beneficial and efficient for companies despite it having several disadvantages. The aim of this essay is to provide sufficient information to support the tall hierarchical structure. First, it will address the positive effects of using a tall hierarchical structure. Then, it will examine the negative effects and conclude with a summary of all the main points.
The are a few advantages for using this structure. Griffin (2016) claims that “the pros of tall structures lie in the clarity and managerial control.” This indicates that supervisors and subordinates need to be clear on where they stand, who to report to and what responsibilities they have rather than
Another possible internal structure would be a decentralised structure. A Decentralised structure is also suitable for Techno as decision-making and control are delegated to and carried out by subordinates. This relieves senior management of having to make many of the routine operational decisions required by the organisation. This structure is often associated with a flat structure and also has several key advantages:
the different types of management structures with other types of organizations with taller hierarchical, example an acute hospital administrators have numerous specialists as department heads dealing with areas such as Human Resources, Finance, Planning, Marketing and Social Services, while Long Term Care Administrators have to handle many of these areas
An advantage of Tesco PLC being part of a hierarchical structure is having a clear authority in each of the levels. This is an advantage because of the various levels having different levels of responsibilities and authorities. As top of the hierarchical structure as shown in the diagram above is the manager director who is the one to have the most control and authority its where the managers will confide in for guidance. Due to being on the level under the manager director as the manager director for example will have their say over what the managers will do. As the hierarchical structure descends there’s less control and authority. Furthermore, is an advantage because Tesco PLC for example, would be able
The organizational structures within a company can be the determining factor if a business can run efficiently or run chaotically into ruin. The organizational structure is the different hierarchy’s and arrangement of authority, roles and duties in an organization. The Cheesecake factory has a very effective organizational structure which allows for its operations to run smoothly and enables the Cheesecake factory to be one of the highest earning restaurant chains. The structure contains three main levels. The first and highest level is the board of directors which contains 7 members, including the CEO David Overton and 6 directors. The next level of hierarchy called N-1 contains 7 levels including the CFO, President, Area Operations,
The relationship between an organization’s strategy and structure are extremely important because it “directly impacts a firm’s performance” (Rothaermel, 2013, p. 309). Also, as an organization grows, it should reevaluate the current strategy and structure to ensure that it remains the optimal choice for the organization (Rothaermel, 2013). The four types of organizational structures, listed in order of least to most complex according to Rothaermel (2013), are: (1) simple, (2)
An organization must align its strategy and structure to allow itself to achieve performance improvements over time. The four different structures, simple, functional, multidivisional, and matrix, are all suited to allow companies with different strategies to succeed but the company must decide which of these is correct for itself. A small start-up company will overburden itself with excessive cost if it seeks to implement a functional structure because it clearly will not have the talent on hand to create whole departments of HR employees or accountants. On the other hand, a company that grows to become a large multi-national
Organisation structure is very important within a company as it helps form a hierarchy and span of control within an organisation. With Alan Howards being a large company that keeps on growing the structure of the company is a hierarchical structure as it has many levels, a hierarchical structure is sometimes called a pyramid structure because at each level downwards there are more employees. The owner and directors are responsible for making the majority of decisions this is good for the company as owner and directors have full visibility of the company at all times. This also means that many people on the pyramid are consulted before it reaches the directors and owner, which leads to a slow reaction to changes. Some of the functions of the organisation are Sales, HR, IT, Payroll, Management, Finance and more. These functional areas all work together to maintain the company hitting their goals.
All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.
As an organisation grows, the hierarchy does too, centralising the ‘thinking’ aspects of the business such as design and development and decentralising the implementation aspects often proves successful, provided that the service or product is able to be controlled and separated in such a way (Morgan). Mechanistic structures that are often implemented by growing organisations are designed to achieve the predetermined goals of the business, and are often successful, provided no innovation is required (Morgan). However with Junction Hotel, it would
Once a hierarchy is established, there is less challenging by the subordinates. “Having a strong leader also makes any group more effective at coordinating action toward some clearly stated goal” (Conniff, 2005,p.78). Although we may resent the hierarchy, we tend to find it comforting and feel safe within it.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
Aside from educating a manager through formal training in managing an organization through change, there are many ongoing activities that will increase a manager's awareness and aid them in supporting a more complex organizational structure as it develops. A company's organizational structure is a road map of its communication patterns. A well-designed structure can also make it easier to identify inefficiencies and new problems as the organization grows. Reviewing the organizational structure on a regular basis will help ensure that the organization set up for optimal growth well into
The major problem every company encounters is the structure or hierarchy of the organization. Usually, it is in the form of a pyramid and gets narrower as it rises resulting in the few people on the top of the pyramid gets more advantages in the company. But the lower level employees are not given that importance when it comes to the utilization of the benefits provided by the company.
This enables organisation a better at designation of tasks to employees or departments within the company, have well-defined responsibilities for employees, and are generally easier to manage. This enables problems to be solved quickly and projects or tasks are done according to plan. Because of this distribution of power and centralisation in decision making, vertical organisation structure provides the organisation the ability to grow efficiently as well increase productivity (Mihm et al. 2010, p 831). As company grows large, management are required to solve problems that are complex because of multiple relevant technologies, globalizing markets, multiple interacting business processes, and collaboration with external partners, vertical organisation structure helps in solving these challenges.
Organizational structure is definitely a must have in an organization. Organizational structure is designed to form and develop clear lines of order to control an organization getting the best use of the organizations resources. According to Mahmud Hasan, some advantages of organization structure are that is easier to control the resources and they can be rationed and allocated to different units to use them at their more productive use at a micro level. Another advantage would be that clearly defined reporting lines make it easy for employees to know whom to report to while reducing redundancies by eliminating extra or unproductive processes. Other advantages are to streamline processes by giving them more focus and adoptive nature, reduce cost because the controlling of various cost control centers are controlled at micro level. Lastly, another advantage is it will help reduce cost because the controlling of various cost control centers are collected at micro level (Hasan, 2010).