Quick questions on Organisational structures - SQA Higher Business Management

A tall (hierarchical) structure has many layers and a narrow span of control (each manager supervises few people). It gives close supervision, a clear chain of command and clear promotion paths. But communication is slow (passing through many levels and easily distorted), decisions take longer, and the many managers make it expensive.

A flat structure has few layers and a wide span of control (each manager supervises many people). Communication is fast and direct, costs are lower (fewer managers), and staff get more delegation and responsibility. The drawbacks are that managers can be overstretched, and there are fewer promotion opportunities.

An entrepreneurial structure has decisions made by one or a few key people (often the owner), common in small businesses. Decisions are fast and the owner keeps tight control, but the firm depends heavily on those few people, who can become overloaded, and staff have little say, which can demotivate.

A matrix structure brings staff with different specialisms into project teams, so an employee belongs both to a function (such as finance) and to a project. It improves the sharing of expertise, flexibility and teamwork, and suits project-based work. The main drawback is that staff have two managers (a functional and a project boss), which can cause confusion and conflicting instructions.

Describe the effect of a wide span of control on a manager. [2 marks]

Explain two reasons a business might choose a centralised structure. [4 marks]