2-5-1-Organisational-Structures

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Understanding organisational structure terminology

An organisational structure outlines the reporting relationships, roles, and responsibilities of employees in the organisation
Businesses must determine what the best structure is for them so as to effectively implement their ideas and achieve their objectives
- They should consider how the structure may affect the management and effectiveness of operations and communications
- A well-designed organisational structure helps to promote clarity, efficiency, and accountability

Terminology used in organisational design

Term	Definition	Explanation
Hierarchy	A hierarchy refers to the levels of authority within an organisation	It describes the ranking of positions from top to bottom The higher the position in the hierarchy, the more authority and power it holds The hierarchy usually includes top-level management, middle-level management, and lower-level employees
Chain of command	The chain of command is the formal line of authority that flows down from the top management to lower-level employees	It defines who reports to whom and who is responsible for making decisions The chain of command helps establish a clear communication channel and helps to maintain accountability within the organisation
Span of control	Span of control refers to the number of employees that a manager or supervisor effectively manages	It is based on the principle that a manager can only effectively manage a limited number of employees A narrower span of control means that there are more layers of management A wider span of control means that there are fewer layers of management
Centralised structure	Decision-making authority is concentrated at the top of the organisation	Senior management make most of the key decisions Centralisation can promote consistency and control
Decentralised structure	Decision-making authority is distributed throughout the organisation	Lower-level employees have more decision-making power Decentralisation can promote flexibility and innovation

Different types of organisational structure

Businesses typically structure their organisation in one of two ways
- Hierarchical (tall) organisational structures
- Flat organisational structures

Different structures and their impact on business efficiency and motivation

Tall structure	Flat structure
Characterised by multiple levels of management and a more centralised decision making process A long chain of command Common in large organisations with complex operations e.g. government agencies and universities	Characterised by fewer levels of management and a more decentralised decision-making process A short chain of command Common in small organisations or start-ups e.g. tech start-ups and small businesses

Advantages	Advantages
Provides a clear hierarchy of authority and defined roles and responsibilities Promotes specialisation and expertise within each department or function Offers opportunities for career advancement and promotion within the organisation All of the above increases efficiency and motivation	Promotes a culture of collaboration and open communication Decision-making can be faster and more efficient Encourages creativity and innovation, as employees have more autonomy and flexibility All of the above increases efficiency and motivation
Disadvantages	Disadvantages
Can create communication barriers between upper and lower levels of the hierarchy Decision-making can be slow as information must pass through multiple layers of management Can lead to bureaucracy and excessive levels of management All of the above reduces efficiency and motivation	Can lead to role ambiguity and lack of clear hierarchy May not provide clear opportunities for career advancement or promotion May require employees to take on multiple roles and responsibilities leading to burnout and overwhelm All of the above reduces efficiency and motivation

The importance of effective communication

Effective communication between a business and its stakeholders is vital
- It helps managers and employees to minimise mistakes
- It supports everyone involved in a business to understand their role and what is expected of them
- It ensures that the businesses values and objectives are clear
- It provides customers with the information they need to understand goods and services
Managers should make sure that communication is controlled and organised to ensure that a suitable level of communication exists between key stakeholders
Effective communications need to be
- accurate
- clear and easily understood
- complete
- appropriate for the intended audience
- via the right medium
- provide a chance for feedback

Over- and under-communication

Two columns compare communication issues: too much causes distraction and confusion; too little leads to feeling ignored and poor decisions. — **The implications of over or under-communication in business**

Barriers to effective communication

Communication may not be effective for a range of reasons
- Written communication can be affected by poor spelling and grammar, illegible handwriting or unclear presentation
- Verbal communication can be affected by language difficulties, the speed of speaking, or strong accents
- The use of jargon can also be a barrier
  - Jargon refers to technical language or acronyms that may not be understood by a non-expert

Different ways of working

Technological developments and flexible working arrangements mean that businesses now have several options for organising the way workers are employed

Ways of working

Full-time employees usually work for more than 35 hours per week whilst part-time employees work fewer hours but are entitled to the same benefits such as paid holidays
Flexible employees may be full-time or part-time and h

Business GCES EDEXCEL

2-5-1-Organisational-Structures

Understanding organisational structure terminology

Terminology used in organisational design

Different types of organisational structure

Different structures and their impact on business efficiency and motivation

The importance of effective communication

Over- and under-communication

Barriers to effective communication

Different ways of working

Ways of working

Responses