The current organizational structure shows the G&M Cars has a very tall hierarchal structure. A very tall hierarchal structure shows that there is a narrow span of control within the company. As G&M Cars is a small company, so a narrow span of control could potentially be beneficial in some aspects of the business but in most of the other, having a flatter organizational structure would be better.
First of all, with a narrow span of control, G&M Cars is able to communicate more quickly between smaller teams of employees. However, if you look at the business as a whole, the communication efficiency levels are actually reduced as employees that are in lower ranking jobs (lower levels of jobs in the structure) would probably not have much to do with the senior managers (higher ranking jobs). In this sense, the lower levels of the employees could potentially start feeling not as valued by the organization managers and company and this could lead to a large drop in staff motivation, which could take a huge toll on a small company like G&M Cars. .
A narrow span of control also means that the employees have better opportunities to earn a promotion. But, in a small company like G&M Cars, this factor would not be of much help or value as the company only has 33 employees, most of which work in the bottom levels of the organizational structure. Also, it can be seen that the tall hierarchal structure could be much more expensive than a flatter one. A flatter hierarchical structure would improve the communication efficiency and be more cost effective. This is due to the fact that with the current plans of expansion, communication between levels would become even more essential and important, and the tall hierarchal structure does not allow this as much as the one one. So, it is obvious that the current structure is not fit for a small business like G&M Cars, a flatter structure is needed. .
The matrix structure of project teams shows the flexible organization of employees from different departments within the organization temporarily working together on a specific project.
