A structure? That’s nice…
- The structure of a business can be shown by a diagram called an organisational chart
- They’re designed to show the following things:
- Chain of command: Who gets their orders from who, via whom?
It’s the path instructions are passed down
- Hierarchy: The levels of authority… who’s boss?
- Span of control: Who a given person is able to order around… or how many people a certain person is responsible for
- Structures with more vertical layers are called tall structures
(anyone want to guess why..?)
- They can look kind of like a pyramid. You’ll know one when you see it!
- Everyone has a narrow span of control
- It’s used more in large businesses
- Smaller businesses tend to have flat structures
- These have less layers, so managers have wider spans of control
- Decentralisation is when power to make decisions is spread out to more people – this works more for flat structures
- The opposite of that is centralisation – when most decisions are made at the head office
- There are some obvious advantages and disadvantages of these different options, such as communication problems and stress, for example
- Stock (Control) – GCSE Business Studies Revision (mattg99.wordpress.com)
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- Answering Written Questions – GCSE Business Studies Revision (mattg99.wordpress.com)