Organisational structures

• An organisational structure is how a business organises its staff to represent the different layers of management.
• Organisational structures can be represented in the form of a chart.
• There are two main types of organisational structure used in businesses – hierarchical (or tall) and flat.
• A hierarchical structure, also referred to as a ‘tall’ organisational structure, has many layers of management, often using a ‘top-down’ approach with a long chain of command.
• In a hierarchical structure, managers have a narrow span of control, meaning they have management responsibility for a small number of subordinates.
• A flat structure is an organisational structure with only a few layers of management, often used by smaller businesses or those adopting a more modern approach to management.
• Key terms in organisational structure include span of control, chain of command, delayering, delegation, and subordinates.
• Organisational structures show job roles and responsibilities.
• Businesses use organisational structures to illustrate job roles and responsibilities.
• Organisational structures show who each employee reports to in their job.
• Forms of management structures include centralised and decentralised.
• Centralised management structure is where business decisions are made at the top of the business or in a head office and distributed down the chain of command.
• Decentralised management structure is where a business allows decisions to be made by managers and subordinates.
• Centralised management structure has advantages such as consistency across the business, clear direction, operations and decisions are closely controlled and managed, and the chain of command and accountability are clear.
• Decentralised management structure has advantages such as improved employee motivation, allowing managers lower down the chain to make decisions to suit their local area and customers, and more responsibility for employees.
• Disadvantages of a centralised management structure include demotivation of employees, a standardised approach may not work in all business locations, and it may lower productivity.
• Disadvantages of a decentralised management structure include inconsistency across the business, managers can make ineffective decisions, and it may negatively impact sales and overall business performance.
• Businesses use organisational structures to illustrate job roles and responsibilities.
• Organisational structures show who each employee reports to in their job.
• The internal make-up of staff within a business, representing the different layers of management and the management approach a business chooses each have a significant impact on the type and amount of communication the business uses.
• As a business grows, maintaining an effective level of communication becomes increasingly difficult.
• Communication in a business can be done in a number of ways, including emails, text messages, online shared spaces, communication apps, letters, reports, phone calls, video-conferencing, and face-to-face meetings.
• When communication is not done well, there can be negative effects on business performance.
• Ineffective communication falls into two categories: insufficient and excessive.
• Insufficient communication means not enough communication or poor-quality communication.
• Insufficient communication can negatively impact efficiency and motivation, as employees may not fully understand what is required of them or what is happening across the business as a whole.
• Excessive communication means too much communication.
• For example, employees may receive too much communication in general, or they may receive the same message via multiple channels.
• This can often cause employees to become confused or feel stressed or overloaded.
• Ultimately, excessive communication can have a similar impact on efficiency and motivation to insufficient communication.
• Organisational structures show who each employee reports to in their job.
• Businesses use organisational structures to illustrate job roles and responsibilities.
• Organisational structures can be hierarchical or flat.
• Forms of management structures include hierarchical and flat organisational structures.
• Barriers to effective communication can be technology issues, poor explanations, incorrect language, poor structuring of information, use of jargon, and lack of understanding.
• Language that is specific to a particular field, such as 'revenue' and 'profit', is business jargon.
• Technical language is a type of barrier to effective communication.
• Official terms for concepts and things, that are typically best understood by people who specialise in a certain field or area, such as computer programmers or medical professionals, are also barriers to effective communication.
• Slang is a type of barrier to effective communication.
• If communication is not received or understood properly, the result may be reduced business efficiency and mistakes.