Management & Communication in Different Structures (AQA GCSE Business)

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Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Management in Different Structures

  • Whether the organisational structure of a business is tall or flat impacts the way it is managed

Management in Different Organisational Structures


Factor


Tall Structures


Flat Structures

Levels of management

  • Tall structures have multiple levels of management, with many layers between top managers and frontline employees

  • This results in a long chain of command with several levels of supervision, leading to slow decision making

  • Flat structures have fewer levels of management, and a shorter chain of command

  • There are few layers between top managers and frontline employees, leading to fast decision making

Span of control

  • In a tall structure, managers have a narrow span of control, meaning they oversee a smaller number of subordinates

  • This leads to close supervision and centralised decision-making

  • Flat structures have a wide span of control, where managers oversee a larger number of subordinates

  • This requires managers to delegate more responsibilities and empower employees to make decisions

Authority and empowerment

  • Authority and decision-making power are concentrated at the higher levels of management

  • This results in less autonomy for lower-level employees

  • Authority and decision-making power are more decentralised,

  • Employees at lower levels are empowered to make decisions related to their tasks and responsibilities

Specialisation and expertise

  • Tall structures often have specialised roles and functions (e.g. marketing)

  • This provides high levels of expertise

  • Flat structures tend to have more generalist roles

  • Employees need a broad range of skills and knowledge

Flexibility and adaptability

  • Tall structures have multiple layers of management and established procedures

  • This can make them inflexible and resistant to change

  • Flat structures are generally more flexible and adaptable

  • With fewer layers through which decisions must be communicated, changes can be implemented quickly

Communication in Different Structures

  • Communication refers to the processes by which information is exchanged between individuals

Diagram: Methods of Communication

Businesses use various methods of verbal, non-verbal or written communication

Businesses use various methods of verbal, non-verbal or written communication

  • Within an organisational structure, communication happens all the time between employees:

    • Downward communication is where managers communicate with subordinates

      • E.g. The marketing manager delivers a presentation to the team of marketing assistants

    • Upward communication is where subordinates communicate with more senior members of staff

      • E.g A production operative sends an email to her supervisor

    • Horizontal communication is where workers communicate with others at the same hierarchical level

      • E.g. Department managers hold an online meeting to discuss targets

  • The speed, frequency, method and effectiveness of this communication are affected by the organisational structure of the business

Communication in tall and flat Structures


Factor


Tall Structure


Flat Structure

Speed

  • Communication flows through multiple layers

  • This can lead to delays, making it difficult for a business to respond to change

  • With fewer layers, communication is more direct and efficient

  • This leads to fast communication, which can help a businesses respond rapidly to change

Frequency

  • Communication, especially instructions, will be frequent

  • Decisions are centralised and will need to be shared often so that workers know what to do

  • Upwards and downwards communication may be less frequent

  • Employees are empowered to make decisions so need less instruction

Method

  • Downward and upward communication is likely to take time as communication travels through multiple layers

  • Horizontal communication is quicker due to narrow spans of control

  • Verbal communication is more likely as managers have time to meet with fewer subordinates

  • Horizontal communication is time-consuming due to wide spans of control

  • Downward and upward communication between managers and subordinates can be much quicker

  • Written or electronic communication (e.g. email) is more likely as managers have little time to meet their many subordinates

Effectiveness

  • Information can be distorted as it passes though numerous layers of hierarchy

  • This can lead to mistakes or confusion amongst subordinates

  • Infrequency and the lack of face to face communication can lead to confusion, especially amongst inexperienced employees

Examiner Tips and Tricks

Management and communication in different structures is closely linked to several other topics, including leadership styles and motivation. In analysis questions, try to make links between these key concepts.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.