P2 Unit 4
Hierarchical Structure: Having a structure of multiple levels. A hierarchical business structure would mean the chain of command looks like a pyramid, with a large base worker, who are directly supervised by the smaller level above them, who are in turn supervised by the level above them, continuing on to the top ranking officer such as the company President or CEO.
* Employees at a lower rank know who the boss is
* Lower ranks can get promoted.
* Employees know exactly what position they are in and also know what job they have to do. Disadvantages
* Communications between the employees and other staff could get lost * Jealousy between employees, when one gets promoted
* Employees know exactly what position they are in and know what job they have to do.
An organizational structure in which most middle-management levels and their functions have been eliminated, thus bringing the top management in direct contact with the frontline salespeople, shop floor employees, and customers. Despite their breadth, flat organizations can benefit from most of the advantages enjoyed by small companies, such as faster response time to changing conditions and customer preferences. Advantages
1. Flat Organisation is less costly because it has only few managers. 2. It creates fewer levels of management.
3. Quick decisions and actions can be taken because it has only a few levels of management. 4. Fast and clear communication is possible among these few levels of management.
1. There are chances of loose control because there are many subordinates under one manager. 2. The discipline in the organisation may be bad due to loose control. 3. The relations between the superiors and subordinates may be bad. Close and...