Types of Structure 1.4.3

Tall structure - An organisational structure that has many levels of hierarchy.

Flat structure - A hierarchy with few levels between staff and executives.

Matrix structure - Where teams are put together from different functional areas to work on specific projects together.


KEY FEATURES OF FLAT STRUCTURE

• Few layers of hierarchy
• Wide spans of control
• Less direct control
• More delegation
• Fewer opportunities for promotion 
• Greater responsibility
• Vertical communication is improved
• Fewer layers = less staff = lower costs

KEY FEATURES OF TALL STRUCTURE

• Many layers of hierarchy   
• Narrow spans of control
• Less delegation
• More opportunities for promotion
• Takes longer for communication to pass through the layers
• More layers = more staff = higher costs

MATRIX STRUCTURE

• In a matrix structure, individuals are assigned to teams according to their specialism, and work on a particular project. 
• This can generally encourage teamwork, empowerment and creativity and give real flexibility to an organisation.
• It is particularly suited to creative organisation in fast moving markets, such as advertising agencies or tech start ups.
• Once the project is complete, employees may be moved onto a different team
• It can mean an individual reports to different managers depending on which project they are working on; careful management is required.

ADVANTAGES OF A MATRIX STRUCTURE

1. Help to break down traditional department barriers, improving communication
2. Individuals get to use their skills within a variety of contexts
3. Likely to result in greater motivation amongst the team memebers
4. Encourages sharing of good practice and ideas across departments
5. A good way of sharing resources across departments.

DISADVANTAGES OF A MATRIX STRUCTURE 

1. Members of project teams may have divided loyalties as they report to two line managers
2. May not be a clear line of accountability for project teams
3. Difficult to coordinate
4. Team members may neglect their functional responsibilites
5. It takes time for matrix team members to get used to working in this kind of structure