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Define organizational structure.
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All Flashcards in Topic 2.2
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2.2.115 cards
Define organizational structure.
An organizational structure shows how roles, responsibilities and authority are arranged in a business, including who reports to whom and how information flows.
Who reports to whom.
Organizational structure determines who reports to ______.
Whom.
Reporting lines.
In a tall structure, is the chain of command usually long or short?
Long.
Many levels = long chain.
In a tall structure, is the span of control usually narrow or wide?
Narrow.
Tall = narrow span.
What does an organizational structure help a business achieve?
Clear reporting lines and coordination, so decisions and communication happen efficiently and responsibilities are clear.
Clarity + coordination.
Tall structure usually has many levels and a ______ chain of command.
Long.
Tall = long chain.
Give one disadvantage of a tall structure.
Communication and decision-making can be slow because messages pass through many levels.
Slow + bureaucratic.
State one feature of a hierarchical (tall) structure.
Many levels of management with a long chain of command.
Tall = many levels.
Flat structure usually has few levels and a ______ chain of command.
Short.
Flat = short chain.
State one feature of a flat structure.
Few levels of management with a short chain of command and often a wide span of control.
Flat = few levels.
Matrix structures can create confusion because employees may report to ______ managers.
Two (or more).
More than one boss.
Give one advantage of a flat structure.
Faster communication and decision-making because there are fewer management layers.
Fewer layers = faster.
Give one disadvantage of a flat structure.
Managers may be overloaded due to a wide span of control, making supervision harder.
Wide span = overload.
What is a matrix structure?
A structure where employees report to more than one manager (for example, both a functional manager and a project manager).
More than one boss.
Exam tip: For structure questions, what should you always do?
Name the structure, state one advantage and one disadvantage, then apply to the business context.
Name + pro + con + case.
2.2.210 cards
Chain of command shows the path of ______.
Authority.
Top to bottom.
What is an organizational chart?
A diagram that shows the structure of a business, including hierarchy, reporting lines and departments.
Visual structure map.
What does the chain of command show on an organizational chart?
The line of authority from the most senior manager down to lower-level employees.
Authority line.
Span of control refers to how many employees a manager ______ supervises.
Directly.
Direct supervision.
Define span of control.
The number of subordinates directly supervised by one manager.
How many report to one boss.
Wide span of control usually means a ______ structure.
Flatter.
Wide = flat.
Narrow span of control usually means a ______ structure.
Taller.
Narrow = tall.
What does delegation mean in an organizational chart context?
Passing authority to a subordinate to carry out specific tasks, while the manager remains accountable.
Authority ≠ accountability.
Why are organizational charts useful for managers?
They clarify roles, avoid duplication of tasks and improve communication across departments.
Clarity prevents confusion.
Exam tip: When analysing an org chart, what should you comment on?
Levels of hierarchy, span of control, chain of command and possible advantages/disadvantages for the business.
Structure + impact.
2.2.310 cards
Define delegation.
Delegation is when a manager gives authority to a subordinate to carry out a specific task, while the manager remains accountable.
Authority ≠ accountability.
Delegation gives employees ______ to make decisions.
Authority.
Not accountability.
Give one advantage of delegation.
It frees up manager time to focus on strategic decisions and higher-level responsibilities.
Manager time saved.
Wide span of control means one manager supervises ______ employees.
Many.
Wide = many.
Give one disadvantage of delegation.
Tasks may be completed poorly if the employee lacks skills or experience.
Risk of mistakes.
Narrow span of control usually results in a ______ structure.
Taller.
Narrow = tall.
A long chain of command can lead to ______ communication.
Slower.
More levels = slower.
Define span of control.
Span of control is the number of subordinates directly supervised by one manager.
How many report directly.
Define chain of command.
The chain of command is the line of authority from senior management down to lower-level employees.
Authority pathway.
Exam tip: In delegation questions, what should you explain?
How delegation affects motivation, efficiency and control, and apply it to the case context.
Impact + case.
2.2.410 cards
Define centralisation.
Centralisation is when decision-making authority is kept at the top of the organisation by senior managers.
Decisions at the top.
Centralisation means decisions are made at the ______ of the organisation.
Top.
Top = centralised.
Define decentralisation.
Decentralisation is when decision-making authority is passed down to lower levels and local managers/teams.
Decisions pushed down.
Decentralisation pushes decision-making ______ to lower levels.
Down.
Down = decentralised.
Give one advantage of centralisation.
It ensures consistent policies and decisions across the whole business.
Consistency.
Centralisation often leads to slower decision-making because approvals take ______.
Time.
More approval steps.
Decentralisation can increase motivation because managers feel ______.
Trusted.
Empowerment.
Give one advantage of decentralisation.
It enables faster decision-making because local managers can respond quickly to local conditions and customer needs.
Speed + local knowledge.
Give one disadvantage of decentralisation.
Decisions may become inconsistent across departments/locations, making coordination harder.
Inconsistency risk.
Exam tip: When evaluating centralisation vs decentralisation, what must you consider?
The business size, locations, manager skills, and whether decisions need consistency or fast local responses.
Fit to context.
Topic 2.2 study notes
Full notes & explanations for Organizational structure
BM exam skills
Paper structures, command terms & tips
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