Organisational structure refers to
the levels of management and division
of responsibilities within an
simpler terms organisation structure
is the break down of the managers and
the different departments within an
shows who manages who and how the
organisation is split up to perform
a business expands it means that the
business will more than likely take on
more staff. With the addition of new
staff more managers may be needed or
managers will be responsible for new
will change the structure
job description outlines the
responsibilities and duties to be carried
out by someone employed to do a
means giving a subordinate
the authority to perform particular
is very important to remember that
it is the authority to perform a task
which is being delegated-not the final
Advantages for Managers
•Managers cannot do every
job themselves. By
delegating job it means
manager’s can focus on more
•Managers are less likely to
make a mistake if they have
fewer task to do.
Managers can measure how
well their staff are doing
based on the work they
Advantages for Subordinates
•The work becomes more
interesting and rewarding
•The employee feels more
important and trusted.
Delegation helps to train
workers and gives them
better career opportunities.
Chain of command is the structure in an
organisation, which allows instructions
to be passed down .
In other words the number of levels of
management an organisation has and how
many levels an instruction or a message
must go through.
The span of control is the number of
subordinates working directly under a
So if a manager was responsible for
three workers what would their span
of control be?
organisation with a long chain of command
and low span of control, generally has a tall
makes passing on an instruction or
message to a member of staff further down
the chain of command more difficult.
with a low span of control it makes it
easier for managers to manage their staff.
organisational structure have a low chain
of command but a high span of control in their
is quicker and accurate.
Because of the higher span of control,
managers are more likely to delegate.
have less control of workers so
mistakes are more likely.
Managers:- Have direct authority
over subordinates in their departments.
They are able to make decisions in their
Managers:- Are specialist
advisors who provide support to the line
managers and to the board of directors.
The production department is
responsible for the
manufacturing of products.
They may also be responsible
for the designing of products.
This finance department is
responsible for setting
budgets, and producing
financial accounts such as
profit and loss accounts and
Purchasing department is
responsible for the ordering
of new stock or materials
needed for the business to
produce their goods to sell.
The marketing department is
responsible for carrying out
research on what products are
needed what products are doing
well. They are also responsible
This department is
responsible for the
recruitment of staff,
ensuring the correct laws
are being followed and
providing staff training.
This department is responsible
for selling the goods and
services available. In most
modern organisation this is
the largest department.
Decentralised management structure means
that decision are NOT taken at the centre or
by the highest level of management. Instead
it is delegated to a lower level of management.
Centralised management system means that
most decisions are taken at the centre of the
organisation or by higher levels or
are taken by managers who are
closer to the action. Therefore people close
to the customers or product and know what is
most like to be successful.
As decentralisation is a form of delegation,
the managers are going to feel more trusted
Decisions are made quicker as information
doesn’t have to passed on to higher managers
or the board of directors first.
identified earlier are responsible for
Federal: By product
Regional: By area or country
Project Team: By different tasks needed
to be completed. E.g.. Designing of a plane
goes to different departments.
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