AQA · GCSE · Business
Course version: 8132 · Version from Sept 2017
Organisational structures: Students should be able to understand:
This section requires students to understand key concepts of organisational structures, including tall and flat structures, span of control, chain of command, hierarchy, delegation, and…
Checked against the AQA 8132 specification (opens in a new tab) on .
- Point 3 of 8
- 3 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
This section requires students to understand key concepts of organisational structures, including tall and flat structures, span of control, chain of command, hierarchy, delegation, and centralisation versus decentralisation. An organisational structure outlines how a business arranges its employees, roles, and reporting lines. A tall structure has many layers of hierarchy and a narrow span of control, whereas a flat structure has fewer layers and a wider span of control. The chain of command dictates how authority flows downwards. Delegation involves passing authority to subordinates, which can motivate staff. Centralisation keeps decision-making at the top, while decentralisation spreads it across the organisation.
For example: A fast-food chain might use a centralised structure for consistency, whereas a creative tech firm might decentralise to encourage innovation.
What earns the marks
- Defines organisational structure, including hierarchy, chain of command, and span of control.
- Distinguishes between tall structures (many layers, narrow span) and flat structures (few layers, wide span).
- Explains delegation as the passing of authority down the hierarchy to subordinates.
- Compares centralisation (decision-making at the top) with decentralisation (decision-making delegated).
- Evaluates how different structures impact communication, motivation, and decision-making speed.
Common mistakes and how to put them right
Confusing span of control with chain of command.
Put it right: Span of control is the number of subordinates directly managed, while chain of command is the route of authority.
Assuming delegation transfers responsibility.
Put it right: Authority is delegated, but ultimate responsibility remains with the manager.
Believing flat structures are always better.
Put it right: Flat structures can overwork managers due to a wide span of control.
Exam tips
- Use a named business from the scenario to recommend whether a tall or flat structure is more appropriate.
- When discussing decentralisation, link it to improved employee motivation and faster local decision-making.
Try the lesson
The start of the Organisational structures: Students should be able to understand: lesson, made from checked teaching notes for this specification point.
Have a go first
What does an organisational structure help a business to understand and manage?
Listen
This section requires students to understand key concepts of organisational structures, including tall and flat structures, span of control, chain of command, hierarchy, delegation, and centralisation versus decentralisation. An organisational structure outlines how a business arranges its employees, roles, and reporting lines. A tall structure has many layers of hierarchy and a narrow span of control, whereas a flat structure has fewer layers and a wider span of control. The chain of command dictates how authority flows downwards. Delegation involves passing authority to subordinates, which can motivate staff. Centralisation keeps decision-making at the top, while decentralisation spreads it across the organisation. For example, a fast-food chain might use a centralised structure for consistency, whereas a creative tech firm might decentralise to encourage innovation. A strong answer earns marks for these points. Defines organisational structure, including hierarchy, chain of command, and span of control. Distinguishes between tall structures (many layers, narrow span) and flat structures (few layers, wide span). Explains delegation as the passing of authority down the hierarchy to subordinates. Compares centralisation (decision-making at the top) with decentralisation (decision-making delegated). A common slip: Confusing span of control with chain of command: the error is treating them as the same. Instead, span of control is the number of subordinates directly managed, while chain of command is the route of authority. Exam tip: Use a named business from the scenario to recommend whether a tall or flat structure is more appropriate.
See it
Key words
Say what each word means before you turn the card.
Organisational hierarchy
Try answering aloud or in your head before turning the card.
Delegation and authority
Try answering aloud or in your head before turning the card.
Centralisation
Try answering aloud or in your head before turning the card.
See every definition
- Organisational hierarchy
- The layers of a business's structure, which a tall structure has many of and a flat structure has fewer of.
- Delegation and authority
- Passing authority to subordinates, which can motivate staff, while ultimate responsibility remains with the manager.
- Centralisation
- Keeping decision-making at the top of the organisation.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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