Assignment: Business Management

Define and explain the following organisational structure and cultures:

Tall

A Tall organisational structure is an organisational structure, having distinct hierarchical levels. In such organisations, there are a number of managers. The managers are responsible for controlling a group of sub ordinates.

Explanation:

A Tall organisation presents a number of managers in between the top management & the employees (Rane, 2007). Different management levels outline distinct protocols & principles. In this way, the employees face difficulty in following a complicated set of rules (which comes from distinct level of management).

Flat

A Flat organisational structure has less number of management levels compared to Tall structure. The organisational structure presents a broad area of control.

Explanation:

The main notion of this organisational structure is to empower employees towards decision making. The main difference between Flat & Tall structure is that the flat structure has few or no middle management levels. The Flat organization structure fosters a culture of self-direction & collaboration.

Figure 1: Flat vs. Tall Organisational Structure

Hierarchical

Hierarchical organisational structure follows a series of hierarchy from top management to the bottom most employees. At each level, an individual has a group of people working under him. The command chain follows a pyramid design.

Explanation:

The hierarchical structure ensures relatively narrow span of supervision. As we move down the pyramid, the control gets broader. The structure follows centralisation, where the top management enjoys the total control.

Figure 2: Hierarchical Structure

Centralised & De-centralised

An organisation is said to have a centralised structure if a management level enjoys a limited authority. On the other hand, de-centralised structure refers to an organisational structure where significant control is exercised by the lower levels of the management.

Explanation:

Centralised & de-centralised organisational structure offers a broad classification of organisational structures. For instance, Tall organisational structure follows centralisation principles. On the other hand, flat organisational structure observes de-centralised structure.

Power Culture

Riley (2012) explained the characteristics of power culture in an organisation. Power culture refers to organisational culture, which exude control from the centre. In a power culture, significant authority lies in the hands of a few. Also, the power culture introduces few rules & protocols. One may find power culture in mostly small organisations, having limited number of employees.

Figure 3: Power Culture

Role Culture

Role culture introduces authority & control in accordance with the job role. Different positions allocate different power levels to individuals. In other words, job roles designate power & authority to a person.

Task Culture

Task culture represents an organisational culture in which there is no single source of power. One may observe task culture in organisations, which develops task teams. Typically, a team identifies & sets its own objectives.

Figure 4: Task Culture

Person Culture

Person culture refers to an organisational culture, which empowers individuals & groups. In such a culture, individuals enjoy significant amount of power. Person culture is common in the accounting & law companies (Riley, 2010).

1.2 Explain how an organization structure and culture can impact on the performance of a business.

Organisational structure & culture has a significant influence on the business ...