Topics: Organizational structure, Management, Leadership Pages: 17 (5606 words) Published: January 28, 2013
1.1 Compare and contrast different organizational structures and culture. 1.1.1. Definition:
_Organizational structure: The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management. A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well. 1.1.2. Different kinds of structures Tall organization structure and Flat organization structure. DEFINITION:
If the span of control is narrow, then there will be many management levels. That is, there will be many managers. This organization structure is called "Tall Organization Structure". If the span of control is wide, then there will be fewer management levels. That is, there will be fewer managers. This organization structure is called "Flat Organization Structure".

There are various advantages of tall organizations. Firstly, within tall organizational structure there is a close supervisory control because of the low span of managers. Secondly, it is a more authoritative structure as a consequence; the roles and responsibilities are clearly defined. Thirdly, in a tall structure the responsible person is other accountable to the higher authorities. Fourthly, this structure enhances the control of the top regulation over the organization. 

On the other hand, there are some disadvantages of high-ceilinged organizations. The primary disadvantage of this structure is that employees are less motivated within this structure therefore, such organizations lack innovation. Secondly, verdict making is slow because for every decision, the approval has to be taken from the higher authorities. Thirdly, towering structure creates communication barriers between the upper and lower management. Moreover, less benefits and rewards are given to the body in the tall organizational structures, which demotivates the workers. 


Advantages of Flat Organizations| Disadvantages of Flat Organizations| Greater communication between management and workers.| Employees may have more than one manager as there are a number of managers at the same level in the organization| Better team sprit as fewer management layers increase interaction between employees on different levels (layers).| May hinder the growth of the organisation especially if managers have wide spans of control.| Less bureaucracy and easier decision making| Structure limited to small organisations such as partnerships, co-operatives and private limited companies.| Fewer management layers may reduce costs as managers cost more than non-managers. Also employees at higher levels in the organization expect to be paid more than those on lower levels.| Lack of layers may reduce opportunities for high level strategic management.| Divisional Structure
Definition: When a company expands to supply goods or services to a variety of customers, offers a variety of different products or are engaged in business in several different markets, the company could adopt a divisional organizational structure. A divisional structure groups its divisions according to the specific demands of products, markets or customers. Unlike the functional organizational structure,...
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