This topic covers the internal organisational structures of a business, including the concepts of span of control, chain of command, delayering, and delega
Topic Synopsis
This topic covers the internal organisational structures of a business, including the concepts of span of control, chain of command, delayering, and delegation, and how these structures impact management and communication.
Key Concepts & Core Principles
- Hierarchy: The levels of management in an organisation, from top to bottom. Tall structures have many layers, flat structures have few.
- Span of control: The number of subordinates directly managed by one person. A wide span means more direct reports, a narrow span means fewer.
- Chain of command: The formal line of authority through which orders are passed. In a tall structure, the chain is long; in a flat structure, it's short.
- Centralisation vs. decentralisation: Centralisation keeps decision-making at the top; decentralisation spreads it to lower levels. Decentralisation can speed up decisions but may reduce consistency.
- Delegation: Passing authority down the hierarchy. Effective delegation can motivate employees and free up managers' time.
Examiner Marking Points
- Understanding of internal organisational structures
- Understanding of span of control
- Understanding of chain of command
- Understanding of delayering
- Understanding of delegation
- Explanation of why businesses have internal organisational structures
- Understanding of different job roles and responsibilities
- Analysis of the impact of tall versus flat organisational structures on management