| Types of Structures | | | | specialist would report to the project manager as well |
| Hierarchal: | | | | as their normal functional manager. |
| A traditional organisation structure with the organisation | | | | The benefits of this structure include: increased |
| chart looking like a tall pyramid with many management | | | | experience, motivation and job satisfaction as staff |
| levels. Decisions and instructions are passed down by | | | | can use their specific expertise in different situations. It |
| senior staff with information passing back up. | | | | is good for tackling complex problems. However, it can |
| Employees tend to be specialised in departments and | | | | be costly to have a variety of different teams. It may |
| know their levels of responsibility and roles. | | | | be difficult to co-ordinate a team with staff from |
| Communication may be slow, resulting in resistance to | | | | different functional areas. There can also be confusion |
| change and inflexibility. | | | | as to who reports to whom as each specialist reports |
| Flat: | | | | to two managers. |
| This is a low pyramid with few management levels. | | | | Decentralised: |
| Information can be easily passed between levels. | | | | Control and decision-making is delegated to |
| There are few levels of management and a short | | | | departments, which relieves senior management from |
| chain of command, giving more independence to each | | | | routine day-to-day burdens. As subordinates are given |
| department. This structure suits small- and medium- | | | | responsibility, they are motivated and decision making is |
| sized organisations. | | | | quicker. This structure could be used, for example, by |
| Entrepreneurial: | | | | a retail chain with different stores. Each store manager |
| Small businesses use this structure. Decisions are | | | | would be responsible for the running and decision |
| made by a few people at the core of the organisation. | | | | making in his or her own store allowing them to use |
| Decisions can be made quickly; staff know who they | | | | local knowledge of consumers and the market in their |
| are accountable to and the decision maker doesn’t | | | | decision making. |
| need to consult staff. This structure is difficult to use in | | | | Centralised: |
| a larger organisation and can create a heavy | | | | Control and decision making lies with top management |
| workload for the few decision-makers. It can also stifle | | | | in head office. Top management are more likely to |
| initiative from other staff. | | | | posses high quality decision-making skills. This is often |
| Matrix: | | | | seen in a hierarchical structure. Procedures can be |
| A matrix structure can often be set-up for a part of | | | | standardised for purchasing and hiring, for example. |
| an organisation when needed. A project team is | | | | Decisions can be made for the whole organisation. It is |
| created to carry out a specific task. Team members | | | | also easier to promote a corporate image when |
| come from different functional areas. | | | | procedures are standardised. However, staff who |
| A project team might be set-up to develop a new | | | | don’t make decisions have very little authority or |
| product, launch a new service or introduce a new IT | | | | room for initiative. Decisions made may not reflect local |
| system. Each team would have a specialist in | | | | conditions. |
| marketing, finance, operations and R&D. Each | | | | |