How organisational structure may affect the different ways of communication.

The idea

Organisational structure is the way a business arranges roles, authority and reporting lines. A tall structure has many layers, so messages pass through several managers; this can slow communication and cause distortion. A flat structure has few layers, so staff may speak directly to senior managers, speeding decisions but increasing managers' workload. Centralised structures concentrate decisions at the top, so communication is mainly downward. Decentralised structures give local managers authority, so lateral and upward communication grows. Formal channels, such as reports and meetings, follow the structure; informal channels, such as conversations, cross it.

For example: A tall retailer may need a weekly briefing to reach shop-floor staff, while a flat design agency may use a daily stand-up.

What earns the marks

• Defines organisational structure as the arrangement of roles, authority and reporting relationships.
• Explains that tall structures create more layers, so messages pass through more people and may be slower or distorted.
• Explains that flat structures reduce layers, so communication can be faster and more direct, but managers may be overloaded.
• Distinguishes centralised structures, where decisions and communication flow mainly from the top, from decentralised structures, where local managers communicate more laterally and upward.
• Contrasts formal channels, such as reports, meetings and appraisals, with informal channels, such as conversations and social contact.
• Applies the link to a business example, showing how structure shapes the direction, speed and channel of communication.

Common mistakes and how to put them right

• Treating structure and communication as unrelated.

  Put it right: Show that reporting lines determine who communicates with whom, how quickly and through which channel.

• Assuming flat structures always improve communication.

  Put it right: Explain that fewer layers can speed messages but may overload managers and reduce clear authority.

• Confusing centralised with decentralised.

  Put it right: Centralised means decisions concentrate at the top, so communication is mainly downward; decentralised means authority is spread, so lateral and upward communication increases.

Exam tips

• Use a named business context and link each structural feature to a specific communication effect, such as speed, direction or risk of distortion.
• When comparing tall and flat structures, refer to the number of layers and the resulting chain of communication.
• Use business terms accurately, including chain of command, span of control, centralised, decentralised, formal and informal communication.