Assignment 1
An organisation is defined as a clearly bounded group (or groups) of people interacting together to achieve a particular goal in a formally structured and co-coordinated way.
A hierarchy organisation is when employees are ranked at various levels within the organisation, each level is one above the other. A tall hierarchical organisation has many levels and a flat hierarchical organisation will only have a few.
Flat Hierarchy
http://limkokwingmba.files.wordpress.com/2008/08/hierarchies.jpg
Flat hierarchies were introduced to cut costs as fewer people are now being employed as managers or supervisors. This then leaves current staff with greater responsibility as their span of control increases, encouraging employees to make decisions for themselves. However this type of hierarchy could leave staff demotivated as they see no opportunity for promotion.
Tall Hierarchy
http://limkokwingmba.files.wordpress.com/2008/08/hierarchies.jpg
Tall hierarchies are essential to large businesses due to the extent of employees they employ each varying in specialist areas or tasks throughout the business. However, communication is slow as there are many different levels of management that have to be informed before any decisions can be made.
Span of Control
Span of control is the number of subordinates who report to an employee and for whose work that employee is responsible. Businesses can operate on a wide or narrow span of control.
Narrow Span of control
A narrow span of control allows swift communication between the manager and employees as there are less people to be informed. Employees are aware to whom they are directly answerably to.
Wide Span of Control
A wide span of control is less expensive because the business employs fewer supervisors or managers. With only one manager and team leader in the hierarchy below the manager, the employees are mostly all on the same level and can work