Types of Organisational Structures
Business: BTEC Level 3 National Extended Diploma, topic 1.2.2
Types of Organisational Structures
As well as being centralised or decentralised, organisational structures can also be classified as tall or flat.
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.
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).
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.