Organisational structure

Question 1

Organisational chart

Answer 1

Diagram that shows the different job roles in a business and how they relate to each other.

Question 2

Span of control

Answer 2

Number of people a manager is directly responsible for.

Question 3

Chain of command

Answer 3

How authority is passed down the hierarchy from top to bottom.

Question 4

Delegation

Answer 4

When a manager passes authority down the hierarchy to a subordinate.

Question 5

Tall organisational structure

Answer 5

• Many levels of hierarchy
• Narrow span of control
• Long communication flow
• Centralised
• Advantages: close monitoring, clear progression + promotion, clear management structure.
• Disadvantages: restricted freedom for employees, high management costs, decisions are slowed.

Question 6

Flat organisational structure

Answer 6

• Few levels of hierarchy
• Wide span of control
• Short communication flow
• Decentralised
• Advantages: better communication, decision making is easier, reduced workforce costs.
• Disadvantages: reduced chance of progression, hinders growth, job roles are blurred.