Business Studies – 2.2.1 Simple organisational structures | e-Consult
2.2.1 Simple organisational structures (1 questions)
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Advantages of a Tall Hierarchy:
- Clear Chain of Command: A well-defined hierarchy makes it clear who reports to whom, reducing ambiguity.
- Specialisation: Allows for the development of specialist departments and roles, leading to expertise.
- Control: Senior managers have greater control over operations and can closely monitor performance.
- Career Progression: Provides clear pathways for employees to advance within the organisation.
Disadvantages of a Tall Hierarchy:
- Slow Communication: Information has to travel up and down many layers, leading to delays and potential distortion.
- Poor Decision-Making: Decisions can be delayed as they need to be approved by multiple levels of management.
- Reduced Employee Motivation: Employees at lower levels may feel less empowered and motivated due to limited autonomy.
- Bureaucracy: Can lead to excessive paperwork and red tape, hindering efficiency.
Impact on Communication and Decision-Making: The tall hierarchy significantly hinders communication due to the multiple layers involved. Decision-making is often slow and centralised, potentially leading to missed opportunities and a lack of responsiveness to market changes. This structure can stifle innovation and employee initiative.