Organisational Charts & Roles | Business Studies for GCSE/IGCSE - Year 11 PDF Download

Organisational Structures

An organisational structure defines how employees fit into a company, outlining their reporting relationships, roles, and responsibilities.

• Businesses need to identify the most suitable structure to effectively execute their ideas and accomplish their goals.
  • They should assess how the structure impacts management, operations, and communication effectiveness.
  • A well-structured organizational framework fosters clarity, productivity, and answerability.

Organisational Chart

• Organizational Structure:
  • A hierarchy outlines the levels of authority within a company, depicting the ranking of positions from highest to lowest.
  • Positions higher in the hierarchy wield greater authority and power.
  • Typically, hierarchies encompass top-level management, middle-level management, and lower-level employees.
• Line of Authority:
  • The chain of command delineates the formal path of authority flowing downward from top management to lower-level employees.
  • It establishes reporting relationships and identifies decision-makers.
  • This structure facilitates clear communication channels and upholds accountability within the organization.
• Management Oversight:
  • Span of control refers to the number of employees a manager or supervisor can effectively oversee.
  • It's based on the concept that a manager can efficiently manage only a limited number of employees.
  • A narrower span of control indicates more management layers, while a wider span implies fewer layers of management.

Tall & Short Organisational Structures

The chain of command and span of control are closely linked.

• A long chain of command usually results in a narrow span of control, creating a tall organizational structure.
• A short chain of command usually results in a wide span of control, leading to a flat organizational structure.

Some businesses opt to streamline their hierarchy by reducing the number of layers, thereby shortening the chain of command. This practice is commonly referred to as delayering.

Characteristics of tall and Short Structures