Organisational Structuring – GCSE Business Studies Revision

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

About that…

  • 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
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About Matt

I like writing, filmmaking, programming and gaming, and prefer creating media to consuming it. On the topic of consumption, I'm also a big fan of eating.
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