“Outline the main ways in which a large centralised organisation might achieve a more flexible organised structure. Using examples, discuss the advantages and disadvantages of pursuing greater organisational flexibility”
“The structures that organisations adopt are usually aligned to one of five generic organisational structures. These are the simple structure, the functional structure, the divisional structure, the holding company structure and the matrix structure. (Capon, C. (2009) the business environment. Chapter 4: Inside organisations. ) This essay will explain the various ways of how a large centralised organisation achieves a more flexible structure through de-centralisation. This essay will analyse the benefits and drawbacks of the matrix structure and the functional structure. A flexible structure allows staff to take part in decision making thus making them feel more valued and motivated, this favours the organisation because efficiency and communication is improved.
Centralised structures are often referred to as bureaucracies and have a long chain of command and a narrow span of control. They are tall structures designed so that directors, owners and management can achieve maximum control. Decision making is isolated within the top part of the hierarchy with a very autocratic style of management (none/very little shared decision making with employees further down the hierarchy). Centralised structures allow benchmarks and certain procedures to monitor quality closely. A clear path can be seen by employees in terms of promotion which often aids in motivation, in turn improving the productivity of staff.
However there are some downsides to a centralised or bureaucratic structure, such as the fact that it’s time-consuming for decisions to be made because the decision has to come from the top of the organisation (CEO’s/Directors) all the way to the bottom through many levels before the employees actually get told what they need to...
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