1.4.3 key terms

• Centralised structure

  An organisational structure where business decisions are made at the top of the hierarchy by senior management/or at the headquarters of a business
• Chain of command


  The way authority and power is organised in an organisation
• Decentralised structure


  When a business allows branches to take more control/make their own decisions
• Flat organisational structure


  One with few layers and a wider span of control for each manager
• Hierarchy


  The order or levels of responsibility in an organisation, from the lowest to the highest
• Matrix organisational structure


  Organises employees from different disciplines or divisions into projects/teams
• Organisation structure


  A diagram that shows who is answerable to whom in an organisation. It can also show vertical and horizontal communication links
• Span of control


  The number of employees/subordinates that a manager is responsible for
• Tall organisational structure


  One with many layers and a narrow span of control for each manager