4.1 Organisational Structures

Question 1

Organisational structure

Answer 1

The way a business arranges itself to carry out its activities

Question 2

Organisational chart

Answer 2

Plan showing the roles of, and relationships between, all employees in a business

Question 3

Line manager

Answer 3

An employee’s immediate superior or boss

Question 4

Authority

Answer 4

Power to control others and to make decisions

Question 5

Span of control

Answer 5

The number of employees that are managed directly by another employee.

Question 6

Chain of command

Answer 6

The line of authority within a business along which communication passes

Question 7

Levels of hierarchy

Answer 7

Layers of authority within a business

Question 8

Delayering

Answer 8

The removal of one or more levels of hierarchy from a business’s organisational structure.

Question 9

Delegation

Answer 9

Passing down of authority to more junior employees, making them share a part of the responsibility with you.

Question 10

Decentralisation

Answer 10

Allows employees working in all areas of the business to make decisions

Question 11

Centralisation

Answer 11

When a small number of senior managers in a business make all the important decisions

Question 12

Tall structure

Answer 12

More layers of hierarchy, narrow spans of control. Usually really simple jobs like working in fast food.

Question 13

Flat structure

Answer 13

Fewer layers of hierarchy but a wider span of control. This allows employees to be more innovative and lets them make decisions if they are more informed. Schools can be examples of a decentralised structure.