Organisational charts can show how a business is organised. The most common type is the family tree chart, showing each 'family' of workers under a manager or director.
Span of control
Each manager has a number of people under his or her control. This is called the span of control and may be wide or narrow. The narrow the span, the stronger the power the manager has over those underneath- his or her subordinates. This power is usually called authority- that is, the right within the organisational set-up to make decisions. In some cases, this authority may be passed on; this is called delegation.
Organisation are controlled from the centre
Some organisation are controlled from the centre. This means that decsion made by a few people. In an orgaisation that is very centrally controlled, there will be little delegation.This can mean quick decision making. But sometimes the centre is too far away from the customer to be efficient.
Decentralised orgamisations spread decision making. This can mean better decisions made at local level.
Most organisations strucutres are in layers, with the people at the top having more authority than those at the bottom.
Some businesses have a vertical or tall strucutre. This means that there is many layers, but few people in each layer. Communication up and down may be slow.
Some business have a horizontal oe flat structure. There are few layers and many people in each layer. Although this means that communication within a layer is generally good, this sort of structure can make decision making hard.
Some businesses may decide to remove layers to become more efficient. This is called de-layering.