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


  • AKA traditional, tall or mechanistic structure
  • many layers in hierarchy & narrow s.o.c


  • AKA organistic, wide structure
  • flat hierarchy, wide s.o.c
  • delegation encouraged