Types of Business Structures
- Created by: tanja soulsby
- Created on: 06-06-17 16:08
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- Types of Business Structures
- Mechanistic
- Use a centralised, traditional structure with well defined hierarchy of power
- Decisions made by managers at the top of the hierarchy
- Uses a tall structure, so messages can take a long time to travel through the business
- Suited to business that don't need to adapt to change very often
- Departments given tasks which don't vary much
- Easy to assign resources efficiently
- Can be slow to make changes within the business
- Employees are specialised in certain tasks and tend to work separately on them
- E.g. each marketing employee might focus on a specific market rather than all of them looking at the whole market
- Organic
- Uses a decentralised structure
- Employees get more say in decision making
- Uses a flat structure which allows fast communication through the business
- Best suited to an uncertain, changing environment as information can be acted upon quickly
- Employees usually work in teams to complete tasks, rather than each having a single role
- The teams can be adapted to suit the situation
- Mechanistic
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