Organizational Structure

Hierarchical Structure

Advantages:

• Decision making starts at the top but can be passed down the lower levels.

• Often the vertical division are separated according to function

• Roles of staff are clear and well defined

• Clear for staff to understand how they can “move up the ladder” to be promoted

• Clear chain of command

Disadvantages:

• One way communication (top to bottom)

• Lack of coordination between department and division

• Tunnel vision problem

• Inflexible and may lead to change resistance

Matrix structure:

Advantages:

• Total communication between all members of the team

• Cross over ideas

• The focus is on the success of the project not department

• Well designed to the response of changing market and technology

Disadvantages:

• The design of total communication is only limited to the senior management

• Lack of control from the top

• Lack of formal bureaucracy may be resisted by managers

• Conflict of interest

Flat Structure:

This means the chain of command from the top is short and the span of control is wide. Due to the small number of management layers, flat organizations are often small organizations.

Vertical chain of command where information is communicated up the hierarchy through the layers and orders are communicated down.

Span of control: refers to the degree of tightness supervision

Advantages:

• More/ greater communication between management and workers

• Better team spirit

• Less bureaucracy and easier decision making