1.2.2

Types of Organisational Structures

Test yourself

Types of Organisational Structures

As well as being centralised or decentralised, organisational structures can also be classified as tall or flat.

Illustrative background for Tall organisational structuresIllustrative background for Tall organisational structures ?? "content

Tall organisational structures

  • A tall organisational structure is a hierarchy with a long chain of command (lots of layers) in the organisation.
  • Usually, each manager has a smaller span of control (is responsible for a smaller number of employees), but lots of people are managers.
Illustrative background for Flat organisational structuresIllustrative background for Flat organisational structures ?? "content

Flat organisational structures

  • A flat organisational structure means the opposite. There are fewer layers in the organisational hierarchy.
  • This means that managers have a larger span of control (manage or are responsible for more employees).
Illustrative background for Matrix organisational structuresIllustrative background for Matrix organisational structures ?? "content

Matrix organisational structures

  • A matrix structure involves an employee reporting to more than one supervisor. For example, in a matrix structure, an employee may report to the manager of their function and to the manager of a certain product or service.
  • Advantage of a matrix structure: it allows a business to bring together teams of expertise without having to break up or disrupt current teams of employees.
  • Disadvantage of a matrix structure: A matrix structure can result in conflict if two managers are giving an employee different instructions.

Jump to other topics

1Exploring Business

2Marketing Campaigns

3Business Finance

4International Business

5Principles of Management

6Business Decision Making

Unlock your full potential with Seneca Premium

  • Unlimited access to 10,000+ open-ended exam questions

  • Mini-mock exams based on your study history

  • Unlock 800+ premium courses & e-books

Get started with Seneca Premium