Business Organisational Structure

Last updated Mar 13, 2023 Edit

• Business

an organisational structure shows how people and management are organised in business.

The structure determines:

• authority & responisbility - who is responsible for whom and who is in charge?
• individual job roles & titles
• the people to whom others are accountable
• the formal routes through which comms flow in the business

Span of control: number of employees for whom a manager is responsible

• allows for closer supervision
• more layers in the hierarchy are required
• helps more effective comms

• gives subordinates the chance for more independance
• more appropriate if labour costs are significant

Chain of command: describes the lines of authority within a business

Hierarchy: the number of layers of management or supervision in the organisational structure

TALL

• AKA traditional, tall or mechanistic structure
• many layers in hierarchy & narrow s.o.c

FLAT

• AKA organistic, wide structure
• flat hierarchy, wide s.o.c
• delegation encouraged

Business