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.

Whom.

Long.

Clear reporting lines and coordination, so decisions and communication happen efficiently and responsibilities are clear.

Long.

Narrow.

Communication and decision-making can be slow because messages pass through many levels.

Many levels of management with a long chain of command.

Short.

Two (or more).

Few levels of management with a short chain of command and often a wide span of control.

Faster communication and decision-making because there are fewer management layers.

Name the structure, state one advantage and one disadvantage, then apply to the business context.

A structure where employees report to more than one manager (for example, both a functional manager and a project manager).

Managers may be overloaded due to a wide span of control, making supervision harder.

A diagram that shows the structure of a business, including hierarchy, reporting lines and departments.

Authority.

The line of authority from the most senior manager down to lower-level employees.

Directly.

The number of subordinates directly supervised by one manager.

Flatter.

Taller.

Passing authority to a subordinate to carry out specific tasks, while the manager remains accountable.

Levels of hierarchy, span of control, chain of command and possible advantages/disadvantages for the business.

They clarify roles, avoid duplication of tasks and improve communication across departments.

Authority.

Delegation is when a manager gives authority to a subordinate to carry out a specific task, while the manager remains accountable.

Many.

It frees up manager time to focus on strategic decisions and higher-level responsibilities.

Taller.

Tasks may be completed poorly if the employee lacks skills or experience.

Slower.

Span of control is the number of subordinates directly supervised by one manager.

How delegation affects motivation, efficiency and control, and apply it to the case context.

The chain of command is the line of authority from senior management down to lower-level employees.

Top.

Centralisation is when decision-making authority is kept at the top of the organisation by senior managers.

Down.

Decentralisation is when decision-making authority is passed down to lower levels and local managers/teams.

It ensures consistent policies and decisions across the whole business.

Time.

It enables faster decision-making because local managers can respond quickly to local conditions and customer needs.

Trusted.

Decisions may become inconsistent across departments/locations, making coordination harder.

The business size, locations, manager skills, and whether decisions need consistency or fast local responses.

Teams formed around specific projects, disbanded when complete — temporary, cross-functional.

Three types of workers like three leaves: core workers, flexible workers, outsourced workers.

Full-time, permanent professionals — well-paid, committed, hard to replace.

Flexible, brings diverse expertise together, clear focus on deliverables, encourages innovation.

Lack of stability, knowledge lost when teams disband, conflicts with functional managers, hard to build culture.

Part-time, temporary or contract — cheaper but less committed.

Consulting, construction, film, software development.

Specialists contracted for specific tasks (IT, cleaning, accounting) — expertise without permanent cost.

Low; expertise — core workers provide stability, others provide flexibility.

Committed; insecure — different worker types have different motivation needs.