Business Organisational Structure
an organisational structure shows how people and management are organised in business.
The structure determines:
- authority & responisbility - who is responsible for whom and who is in charge?
- individual job roles & titles
- the people to whom others are accountable
- the formal routes through which comms flow in the business
Span of control: number of employees for whom a manager is responsible
Narrow S.O.C#
- allows for closer supervision
- more layers in the hierarchy are required
- helps more effective comms
Wide S.O.C
- gives subordinates the chance for more independance
- more appropriate if labour costs are significant
Chain of command: describes the lines of authority within a business
Hierarchy: the number of layers of management or supervision in the organisational structure
Types of Structure
TALL
- AKA traditional, tall or mechanistic structure
- many layers in hierarchy & narrow s.o.c
FLAT
- AKA organistic, wide structure
- flat hierarchy, wide s.o.c
- delegation encouraged