Organisations & Behaviour (LO1)
Q1[LO1.1] Differences between the hierarchical and the horizontal organisation structure and typical working cultures.
A hierarchical organisation follows the layout of a pyramid. It is also called as tall or vertical structure. Every employee in the organisation, except one, usually the CEO, is subordinate to someone else within the organisation. The layout consists of multiple entities that descend into the base of staff level employees, who sit at the bottom of the pyramid. Since tall organisations generally have fewer employees reporting to managers, the managers can provide greater supervision.
A horizontal organisation refers to an organisation structure with few or no levels of management between management and staff level employees. It is also called as flat structure. The horizontal organisation supervises employees less while promoting their increased involvement in the decision-making process.
☞Differences between vertical and horizontal organisation structure Vertical
Low number of subordinates per supervisor
High number of subordinates per supervisor
Long chain of command
Short of chain of command
Greater number of levels
Less number of levels
☞Advantages and Disadvantages of hierarchical structure
Employees recognize defined levels of leadership within the organisation; authority and levels of responsibility are obvious. Communication across different departments tends to be less effective than in flat organisations. Opportunities for promotion motivate employees to perform well. Rivalry between departments may inflame as each department makes decisions that benefit its own interests rather than the organisation's as a whole. Hierarchical structures promote developing employees as specialists. Employees may narrow their field of focus and become experts in specific functions. Increased bureaucracy often hinders an organization’s speed to change. Increased time may be required to respond to clients. Employees become loyal to their departments and look out for the best interest of their area. Salaries for multiple layers of management increase an organisation’s costs.
☞Advantages and Disadvantages of horizontal structure
It elevates the employees’ level of responsibility in the organisation Employees often lack a specific boss to report to, which creates confusion and possible power struggles among management. It removes excess layers of managements improves the coordination and speed of communication between employees. Flat organisations tend to produce a lot of generalists but no specialists. The specific job function of employees may not be clear. Fewer levels of management encourage an easier decision-making process among employees. Flat structure may limit long-term growth of an organization; management may decide against new opportunities in an effort to maintain the structure. Eliminating the salaries of middle management reduces an organization’s budget costs. Larger organizations struggle to adapt the flat structure, unless the company divides into smaller, more manageable units.
Q2]LO1.2] Based on the strategic factors of external responses and internal structural control, identify and compare two organisational cultures. Assess the business performances of them in terms of their business focus and response to a dynamic and fast changing external environment of today. ☞Working Cultures
What Does Working Culture Mean?
Workplace culture is the type of environment people work in, the way they interact with one another, the way they go about their work and the practices undertaken in this environment. Some working cultures are apparent at first glance while others are more subtle and slow to reveal. How to work with different working cultures?
Working effectively with different cultures is a necessary skill for anyone in a culturally diverse work...
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