Section 4: People in business, organisational Structure

AQA As business studies, section 4 people in business

Organisational Structures

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  • Created by: sophie
  • Created on: 03-05-11 16:34

What is an organisational structure?

Organisational Structure is a way a business decides to carry out its activities.

Key Elements in Organisational Structures

  • Workloads and Job Allocation : Who is going to do which job and what they are expected to do in working day, this can make a business more effective and cost-efficient.
  • Levels of Hierarchy : Refers to the number of layers of authority within an organisation. Large number of layers 'tall'  and a 'Narrow Span Of Control' . A 'flat'organisational structure few layers of hierarchy and a 'wide span of control'
  • Spans of Control :  Narrow span of control allows managers and supervisors to keep close control over employees for whom they are responsible for. A wide span of control, gives greater independence to employees because it is impossible for a manager or supervisor to monitor closely the work of a large number of individuals.


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Key Elements in Organisational Structures Cont....

Key Elements in Organisational Structures

  • Delegation :  The passing down of authority. Giving  more authority leading to wider span of control which can work effectively if junior employees have been delegated authority to take decisions.
  • Communication Flows :  Communication id the exchange of information between two or more parties. Communication Flows, up /down and across the organisation. Up and Down, passing of information down from senior to junior employees and from junior to senior employees. Across, employees at the same level.
  • Centralisation and Decentralisation : Centralised is where most of decision are made at the top by managers. Decentralised is where greater authority given to employees lower down the organisational structure.
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Key Elements in Organisational Structures Cont....

How Organisational structures affects business performance.

An entrepreneur when first designing an organisational structure will be to:

  • Keep a tight control on costs and meet customers needs.

Keeping control of Costs


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