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Key structural concepts

IB Business Management β€’ Unit 2

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πŸ”— Key Structural Concepts

Big Idea: Delegation is when a manager gives authority to a subordinate to carry out a specific task. The manager remains accountable but the subordinate gains responsibility.

Delegation

  • Advantages: frees up manager time for strategic tasks, motivates employees (shows trust), develops employee skills, leads to faster decision-making
  • Disadvantages: risk of poor quality if employee lacks skills, manager loses some control, employee may feel overburdened, some tasks should not be delegated (e.g. confidential matters)

Span of control

The number of subordinates directly managed by one person.

  • Wide span: one manager supervises many people -- suitable for experienced, motivated teams doing routine work
  • Narrow span: one manager supervises few people -- suitable for complex work requiring close supervision and support

Chain of command

The line of authority from the most senior person to the most junior.

  • Long chain: many levels -- information may be distorted as it passes through multiple layers
  • Short chain: few levels -- faster, more accurate communication
Delegation, span of control and chain of command are all connected. More delegation = wider span possible = fewer levels needed = shorter chain of command. πŸ”—

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