Organisational structure Edexcel International GCSE Business revision
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In plain words
As a business grows, people need to know who is in charge of what, and who reports to whom. An organisational chart shows this as a diagram, with the most senior person at the top.
Its shape tells you a great deal: tall and narrow, or short and wide.
6 things to know
- The hierarchy is the levels of authority, from directors at the top to operatives at the bottom.
- The chain of command is the route by which instructions pass down from the top to the bottom.
- The span of control is the number of people who report directly to one manager.
- A tall structure has many levels and narrow spans: close supervision and plenty of chances for promotion, but slow communication and many managers to pay.
- A flat structure has few levels and wide spans: faster communication and more responsibility for workers, but managers have more people to supervise.
- In a centralised business, decisions are made at the top or at head office. In a decentralised one, they are passed down to branches or departments, where local knowledge is.
Tips and tricks
- Span of control is counted across the chart, not down it: count the boxes directly beneath one manager.
- Removing levels of management is called delayering. It makes the structure flatter and widens the spans of control.
It lands in your notebook with its questions as flashcards.
Organisational structure: 5 questions and answers
These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.
A manager has six people reporting directly to her. Her span of control is
It is the number of direct subordinates.
What is the chain of command?
It runs from the top of the hierarchy to the bottom.
Which is a feature of a tall organisational structure?
Tall means many layers, each with a narrow span.
Which is a disadvantage of a tall structure?
Each extra layer delays and can distort the message.
In a centralised organisation, decisions are made
Control is kept at the centre.
Quiz
5 questions
Tap an answer and you’ll see straight away whether it’s right, and why.
Worksheet
3 questions, 8 marks. Write your answers on paper, then check them.
Organisational structure
Edexcel International GCSE Business 4BS1 · 8 marks · papermunch.org
Name ______________________________ Date ______________
Define span of control.[2]
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The number of subordinates who report directly to a manager.
Explain two advantages of a flat organisational structure.[3]
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There are fewer levels, so communication between the top and the bottom is quicker. Employees are given more responsibility, which can motivate them.
Explain one advantage and one disadvantage of decentralised decision-making for a chain of shops.[3]
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Advantage: each shop manager knows the local customers and can respond to them quickly. Disadvantage: shops may do things differently, so the business is less consistent and harder for head office to control.
Answers: Organisational structure
- 1. The number of subordinates who report directly to a manager.
- 2. There are fewer levels, so communication between the top and the bottom is quicker. Employees are given more responsibility, which can motivate them.
- 3. Advantage: each shop manager knows the local customers and can respond to them quickly. Disadvantage: shops may do things differently, so the business is less consistent and harder for head office to control.