BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An established sole trader organisation with three employees
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Where the business needs to make quick decisions involving all staff
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Where managers wish to keep a tight control over their staff
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A new business start-up with five staff members
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Detailed explanation-1: -A hierarchical structure is typical for larger businesses and organisations. It relies on having different levels of authority with a chain of command connecting multiple management levels within the organisation. The decision-making process is typically formal and flows from the top down.
Detailed explanation-2: -A hierarchical structure has many layers of management, and businesses with this structure often use a ‘top-down’ approach with a long chain of command . In a hierarchical structure, managers will have a narrow span of control and a relatively small number of subordinates (staff).
Detailed explanation-3: -The three main organizational structures are Hierarchical, Sequential, and Matrix.
Detailed explanation-4: -The four types of organizational structures are functional, multi-divisional, flat, and matrix structures. Others include circular, team-based, and network structures.