Organisational Structures

• What is an organisational structure?

  An organisational structure is how a business organises its staff to represent the different layers of management.
• How can organisational structure information be displayed?

  This information can be displayed in the form of a chart.
• What are the two main types of organisational structure used in businesses?

  • Hierarchical (or tall)
  • Flat
• What is a hierarchical structure also referred to as?

  A hierarchical structure is often referred to as a ‘tall’ organisational structure.
• What characterizes a hierarchical structure?

  A hierarchical structure has many layers of management and often uses a ‘top-down’ approach with a long chain of command.
• What is meant by a long chain of command in a hierarchical structure?

  A long chain of command means there are many levels of authority from top management to the lowest level of staff.
• What is the span of control in a hierarchical structure?

  In a hierarchical structure, managers will have a narrow span of control and a relatively small number of subordinates.
• What is a flat structure?

  A flat structure is an organisational structure with only a few layers of management.
• How does the span of control differ in a flat structure compared to a hierarchical structure?

  In a flat structure, managers have a wide span of control with more subordinates.
• What is the chain of command like in a flat structure?

  In a flat structure, there is usually a short chain of command.
• Why are flat organisational structures commonly used by smaller businesses?

  Flat organisational structures are commonly used by smaller businesses or those adopting a more modern approach to management.
• What does the term "span of control" refer to in an organisational structure?

  The number of staff that a manager has responsibility for
• What is meant by "chain of command" in an organisational structure?

  The route by which instructions and communications flow from the top to the bottom of a business
• Why is the chain of command important in a business?

  It explains who is answerable to whom within the organisation
• What does "delayering" mean in the context of organisational structure?

  A process where a business removes layers of its management to make its structure more flat
• What is the purpose of delayering in an organisation?

  To create a flatter organisational structure
• What does "delegation" refer to in an organisational context?

  A process where tasks are given to members of staff
• How does delegation typically occur within a business?

  Managers give tasks to employees further down the chain of command
• Who are considered "subordinates" in an organisational structure?


  Members of staff below a manager in the chain of command
• What role do subordinates play in an organisation?

  They carry out tasks assigned by their managers
• What are the two main forms of management used by businesses?

  Centralised and decentralised management structures
• What is a centralised management structure?

  • Decisions are made at the top or in a head office
  • Decisions are distributed down the chain of command
  • Often used in retail chains
  • Store managers have little input into operations
• How does a centralised management structure affect the response to changes in the business environment?


  It can be slow to respond to changes in the business environment or local changes near branches
• What are the advantages of a centralised management structure?

  • Consistency across the business
  • Clear direction for the business
  • Close control and management of operations and decisions
  • Clear chain of command and accountability
• What are the disadvantages of a centralised management structure?

  • Can demotivate employees
  • A standardised approach may not work in all locations
  • May lower productivity
• What is a decentralised management structure?

  • Decisions are made by managers and subordinates further down the chain
  • Provides staff with more decision-making responsibilities
  • Individual stores or departments can make decisions on staffing, products, and pricing
• How does a decentralised management structure affect a business's response to changes?

  It can often respond quickly to changes in the business environment and local area
• What are the advantages of a decentralised management structure?

  • Improved employee motivation
  • Managers can make decisions suited to their local area and customers
  • More responsibility for employees
• What are the disadvantages of a decentralised management structure?

  • Consistency is not achieved across the business
  • Managers can make ineffective decisions
  • May negatively impact sales and overall business performance
• Why is effective communication important in any business?

  It is important for efficiency and motivation.
• How do organisational structure and management approach affect communication in a business?

  They significantly impact the type and amount of communication used.
• What challenge does a growing business face regarding communication?

  Maintaining an effective level of communication becomes increasingly difficult.
• What are the common methods of communication in a business?

  • Emails
  • Text messages
  • Online shared spaces
  • Communication apps
  • Letters
  • Reports
  • Phone calls
  • Video-conferencing
  • Face-to-face meetings
• What are the negative effects of poor communication in a business?

  It can negatively impact business performance.
• What are the two categories of ineffective communication?

  Insufficient communication and excessive communication.
• What does insufficient communication mean?

  It means not enough communication or poor-quality communication.
• How does insufficient communication affect employees?

  It can lead to a lack of understanding of requirements and overall business happenings.
• What is the impact of insufficient communication on overall business performance?

  It may decrease the productivity of employees.
• What is a barrier to communication?

  A barrier to communication is something that stops communication happening or makes communication less effective.
• What does excessive communication mean?

  It means too much communication, either in general or through multiple channels.