Organisational structure defines how activities such as task allocation, co-ordination and supervision are directed the achievement of organisational aims – shows the organisation hierarchy.
Organisational structure is important as it provides a guideline to employees by laying out the relationships that oversee the workflow of the organisation. This means that it establishes the effective lines of control and communication. (Ingram, 2015)
It is also important because it helps an organisation make decisions. Most businesses have either a tall or flat organisational structure that influences decisions being made. Larger businesses such as Sainsbury’s have a tall organisation structure because they are lots of different layers of management and many people who need to be organised. However, smaller business such as Huddersfield New College and a pub have a flat organisational structure because they are less layers of management and less people who need organising. Both tall and flat organisation structure have span of control which refer to the amount of people one person has to take responsibility for i.e. someone in a tall organisational structure has a narrower span of control then someone in a flat organisational structure because different managers for each group of worker.
The advantages of a tall organisational structure is that there is clear management structure. Another advantage of the tall organisational structure is that each layer is a clear and distinct in the lines of control and responsibilities.
The disadvantages of a tall organisational structure is that decision making is slowed because it has to meet the approval of each layer. Another disadvantage communication has to go through each layer of management. (LEARNMANAGEMENT2, 2015)
The advantages of a flat organisational structure is better communication between workers and