Contemporary Issues in Business, Management and Marketing Assignment Sample

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Introduction

Tall organisational structure is also termed as hierarchical which includes different management layers, in which the decision making flows through the top down. While Flat organisational structure has no levels and minimal middle management among the executives and staff. Flat organisational structure facilitates quick communication with the employees rather than the tall organisations. This is due to flat organisations can have more workers who communicate with the consumers due to the shorter hierarchical system. The report will shed light on the different types of organisational structure along with the benefits and drawbacks associated with it.

Contemporary Issues in Business, Management and Marketing Assignment Sample

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Over viewing of why managers need to pay careful attention to organisational structure

The organisational structure plays a key role because these help the businesses to apply effective decision making procedures. By assigning the specialised role to the workers of lower level, the businesses might create the better and faster decisions. In the business organization, manager emphasizes on building prominent organisational structure because this influences the business effectiveness, employee motivation, decision making and communication. Based on the Mintzberg, the organisational structure dictates decision making procedure and formal relationships in the organisation (Mintzberg Organizational Structure, 2024).

This includes the adhocracy, divisionalised form, professionally bureaucracy, machine bureaucracy and simple structure (Lee, 2022). This develops the capability to innovation and adaptation as well. A structure which is well designed assures operational needs and business objectives with the alignment. The organisational structure which is ineffective might affect the overall working of business unit. For example: Bureaucratic structure can decrease capability within the technical dynamic industries and slows down the process of decision making which in turn increases the inefficiencies. The efficient structuring puts impact on the workers engagement on organic and mechanistic structures. This showcases that the hierarchies are rigid suitable for the environments which are stable. On the other hand, flexible structures effectively work within the markets.

The managers in the modern businesses need to manage the agility and hierarchy. For instance, structured hierarchy of Amazon permits smoothly within the logistics, the organisations such as Valve Corporation. This is a game developer, this works with the effective flat structure which boost the innovation and creativity. Therefore, the managers need to enhance structure to meet the workforce dynamics, goals and industry of organisation. This also can help in enhancing business performance, manage workers and make better decisions as well.

Discussion of two different structural types

Organisational structure might be characterised as the flat or tall. The tall structure of organisation focuses on the hierarchy’s different levels; along with the well define roles, clear chain of command (Tall Organizational Structure, 2024). The larger multinational corporations like as IBM and McDonald’s utilise the structure to control the different locations and manage operational aspects with high consistency. The Tall organisational structure includes multiple workers in the every section of management process, this permits for the more strict and oversight compliance standards (Dahlan et al, 2021).

The large businesses which have different departments can need a tall organisational structure to manage the assets. In context to the flat organisational structure, this carries the less levels of hierarchy, enhancing decision making decentralised and open communication (Flat Organizational Structure, 2024). The small business owners typically utilise the flat business structure when organising their companies. This provides help to the businesses in managing the clear communication, keep modest and effective budget. This aligns with the unique standard, like as lenient management. Different creative firms and technology start-ups like as Rotageek applies the structure to boost the flexibility and innovation. The choice among the flat and tall structures relies on the different aspects like as strategic objectives, industry and size. The tall structure offers the control and stability, whereas the flat structure permits for quick decision making and agility.

Benefits and drawbacks of Tall structure

Tall structures are specified by channels of structured communication, role specialisation and clear authority. This is creating these appropriately suited for the organisations large based. In accordance with the management principles of Fayol, the hierarchical structures boost the control and discipline assures about the stability within the organisations with the complexities (14 Principles of Management by Henri Fayol, 2024).

Benefits:

Effective supervision and control: The managers can assure about company policies adherence and monitor on-going performance of the workers. For instance, structured hierarchy of IBM permits for the quality control within the IT services.

Defined career progression: Workers have to promote clear paths, developing the retention and motivation (Hurst et al, 2022). For instance, McDonald’s provide career paths which are structured from the member of crew to the managers of store.

Risk management: The overall decision making is systematic and deliberate, decreasing unverified and impulsive actions.

Drawbacks:

Lower employee engagement: The barriers of communication among the lower level worker and top management might resist shifting and also creating the disengagement.

Decreased creativity and innovation: Workers can feel restricted by offering suggestion about the novel ideas because of the reporting lines rigidly (Whetsell, Kroll and DeHart-Davis, 2021).

Slower decision making: Different layers of the delays may result into slower decision making. For instance: GM (General Motors) faces issues with the inefficiencies of bureaucratic before overall restructuring.

Benefits and drawbacks of flat structure

Flat structures develop the employee empowerment, decision making rapidly and flexibility through decreasing hierarchical barriers. Based on the Stalker and burns, the companies with the structures which are organic focused via decentralisation within rapidly changing industries.

Benefits

Higher employee satisfaction: Workers feel valued which leads to high retention and developed engagement.

Encourage collaboration and innovation: Workers can contribute to the thoughts effectively and freely which in turn creates innovative work environment (Xu et al, 2022). For instance, Rotageek works without any self-organise team empowerment and formal managers.

Fast decision-making processes: Along with the fewer layers, the data and information flows rapidly, permitting for the responses with the agility to changes within the market. For instance: IQ Mobile encourages the flat hierarchy for the change within the innovative products.

Drawbacks:

Potential accountability lack: Without any kind of well-defined decision making, leadership might become inconsistent (Whetsell et al, 2021).

Scalability challenges: As the organisation develops, the overall flat structure may face issues with the co-ordination. For instance: Zippos tested with the major holacracy (Model of self management) but after that revised this because of the difficulties in the operations.

Role Ambiguity: Workers can lack within the responsibilities clearly which leads to conflicts and inefficiencies. As the organisation develops, the structure based on flat can face issues with the major co-ordination.

Conclusion

Conclusively, it can be stated that the flat and tall structure both provides the challenges and unique advantages. Thus, selection of the structure relies on the strategic priorities, industry and size of organisation. Tall structure assures about the career growth, control and stability but can affect the responsiveness and innovation. The flat structures boost the agility, collaboration and creativity but face issues with the scalability and role clarity. The managers should effectively evaluate the organisational requirement to strike the effective management among the flexibility and hierarchy for the success based on the long term. This can boost the clear structure which offers help to the managers in taking better and faster decisions through assigning major roles and streamlining the procedures.

References

Books and journals

• Dahlan, M.K.M., Abdullah, N. and Suhaimi, A.I.H., 2021, October. The propose organization structure for digital workplace. In 2021 IEEE Symposium on Computers & Informatics (ISCI) (pp. 31-35). IEEE.
• Hurst, W.R., Lee, S. and Frake, J., 2022. The hidden cost of flat hierarchies for applicant pool diversity: Evidence from experiments. In Academy of Management Proceedings (Vol. 2022, No. 1, p. 15375). Briarcliff Manor, NY 10510: Academy of Management.
• Lee, S., 2022. The myth of the flat start‐up: Reconsidering the organizational structure of start‐ups. Strategic Management Journal, 43(1), pp.58-92.
• Whetsell, T.A., Kroll, A. and DeHart-Davis, L., 2021. Formal hierarchies and informal networks: How organizational structure shapes information search in local government. Journal of Public Administration Research and Theory, 31(4), pp.653-669.
• Xu, F., Wu, L. and Evans, J., 2022. Flat teams drive scientific innovation. Proceedings of the National Academy of Sciences, 119(23), p.e2200927119.

Online

• 14 Principles of Management by Henri Fayol, 2024. online. Available though <https://www.geeksforgeeks.org/14-principles-of-management-by-henri-fayol/>
• Flat Organizational Structure, 2024. Online. Available through https://www.nibusinessinfo.co.uk/content/flat-organisational-structure
• Mintzberg Organizational Structure, 2024. Online. Available through https://study.com/academy/lesson/henry-mintzberg-organizational-structure.html
• Tall Organizational Structure, 2024. Online. Available through https://www.organimi.com/what-is-a-tall-organizational-structure/