3.4.1 - Organisational structures

• What is an organisational structure?

  An organisational structure is how a business organises its staff to represent different layers of management.
• What are the two main types of organisational structures?

  The two main types are hierarchical (tall) and flat (wide) structure.
• How does an organisational structure affect communication and decision-making in a business?

  It identifies specific job roles and indicates who reports to whom and who is responsible for particular employees.
• What does the organisational structure identify?

  It identifies the relationship between different employees, departments, and locations.
• What is the span of control?

  The span of control is the number of staff that a manager has responsibility for.
• What is the chain of command?

  The chain of command is how instructions and communications flow from the top to the bottom of a business.
• What is delayering in an organisational structure?

  Delayering is a process where a business removes layers of its management to make its structure more flat.
• What is delegation in a business context?

  Delegation is a process where tasks are given to members of staff, often by managers.
• Who are subordinates in an organisational structure?

  Subordinates are members of staff below a manager in the chain of command.
• Why does a growing business need an organisational structure?

  A growing business needs an organisational structure to ensure it runs efficiently and clarifies direct reporting lines and job roles.
• What is a centralised management structure?

  Decisions are made at the top of the business and flow down the chain of command.
• What are the advantages of a centralised management structure?

  • clear direction
  • closely managed operations
  • clear chain of command.
• What is a decentralised management structure?

  Decisions to be made by managers and subordinates further down the chain.
• What are the advantages of a decentralised management structure?

  • improved employee motivation
  • more responsibility for employees
• What are the disadvantages of a decentralised management structure?

  • managers can make bad decisions
  • dispersed decision making - inconsistency across tasks
• How can poor decisions in a decentralised structure impact a business?

  Poor decisions can negatively impact sales and overall business performance.
• advantages of centralised management

  • consistency across the business
  • business has clear direction
  • chain of command is clear
• what is the level of hierarchy?

  layers of authority within a business
• autonomy means...

  on your own (by yourself)
• what are staffing levels?

  Number of employees assigned to a particular project, organisation or department
• what is a tall/hierarchal structure?

  • many layers of management
  • long chain of command
  • narrow span of control - small number of subordinates
• what is a flat/wide structure?

  • wide span of control - lots of subordinates
  • few layers of management
  • short chain of command
  • usually used by smaller businesses
  • modern approach to management