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This structure as mentioned earlier has broader spans of control and fewer levels of authority.
The advantages of this structure are that a reduction in the costs of management is achieved and owing to fewer levels of management communication is in theory, more easily achieved. Difficulties are that with fewer managers, more workload is placed upon each employee, promotion is more difficult to obtain and development opportunities are decreased. Tall Hierarchical Structure
This structure is commonly found in larger organisations and has narrower spans of control with increased levels of authority. This results in increased hierarchical control and empire building with the creation of unnecessary work to justify positions. The advantages of this type is the spread of workload is decreased and improved staff development and training, with increased promotional opportunities. Matrix Structure This type of structure is effectively a combination of flat and tall hierarchical structure.
It is more complex and offers greater control of the company and increased opportunities for staff, this can also lead to confusion over different roles as they are closely linked and yet independent.
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Functional Structure This type of structure is suitable for small to medium sized companies. The advantages of this are that it is concentrated into different departments with a specialised workforce within them. This assists with the development of skills and experience. The disadvantages are that horizontal co-ordination of activities between departments and lack of communication.
Problems occur if the company expands and remains under the same structure, as there will be more managers at different locations.
Conclusion It would appear that an amalgamation of these, is the best solution for TBBC's expansion across three regions of the country. Using the functional structure at the Tiptown base for company co-ordination, being mirrored in Plymouth and Manchester with a taller hierarchical structure. The general management picture would appear the same with an extra Director provided for each region. This would allow each area to cater for its own customer needs.
Other areas of consideration to complement the company's organisational structure should also be directed towards centralisation, decentralisation, specialisation, co-ordination, control, efficiency, supply and distribution. TBBC needs to concentrate on the company's jobs being grouped together. This involves identifying a range of tasks which are in common and allocating them to specific departments. This can be in the form of horizontal (concerning all departments at the same level) or vertical (management level). This process is called specialisation.
Along with specialisation consideration needs to be given to co-ordination (integration). This process ensures that activities of the individual departments are co-ordinated, planned and controlled in order to meet the objectives/goals of the organisation. It is important that co-ordination takes place between peers and managers. Again, this is referred to as vertical integration, the hierarchy of co-ordination of activities at management level. and horizontal integration is the co-ordination of activities between departments at the same level.
This ensures coercive and compatible pattern of activities. It is also important to establish control throughout TBBC. This comes from senior managers organising the working patterns of its employees, which will enable them to work in unison with TBBC's goals and objectives. Whilst working through this process the efficiency of the company needs to be borne in mind, to continue achieving optimum levels of producing the product lines at the correct financial cost. Supply and distribution are very crucial elements to meet the company's goals and objectives.
In terms of supply TBBC needs to continue the production of goods for the appropriate market, which will have been decided upon by carrying out market research. It can then ensure maximum distribution and spread of delivery of the two production lines to the market place, meeting demands. It is clear the above processes have been carried out within TBCC to establish its current functional organisational structure. This will need to be reviewed to suit the new structure, as problems can occur causing centralisation and decentralisation.
Centralisation occurs when decision making of the company is by senior managers. Decentralisation occurs when delegation of decision making is given to junior staff. It is important to evenly balance both centralisation and decentralisation. If this balance is achieved, then an individual contribution to the company will be recognised and utilised appropriately. This will improve their performance through increased morale and this will in turn improve the company's overall performance.
Organizational Structure Optimization for TBBC's Regional Expansion. (2020, Jun 02). Retrieved from https://studymoose.com/hierarchical-structure-13310-new-essay
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