Business Studies·Organisational structures · NSSCO 2.2
Organisational structure: hierarchy, authority, span of control & org charts
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Every business needs a shape — a way of arranging its people so everyone knows their job and their boss. In this lesson we learn what an organisational structure is and why it matters, the difference between centralised and decentralised, and the key words managers use every day: hierarchy, responsibility, authority, span of control, chain of command, centralisation and delegation. We will draw a real organisation chart together, see why a business must change its structure as it grows, and finish with the four ways a business can be structured.
What you'll learn in this lesson
By the end you should be able to (NSSCO Business Studies 2.2):
- Define an organisational structure (centralised, decentralised) and explain its importance
- Define hierarchy, responsibility, authority, span of control, chain of command, centralisation, delegation
- Comment on central features of organisational structure and activity: hierarchy, responsibility, authority, span of control, chain of command, centralisation, delegation
- Draw and explain a simple organisation chart
- Explain the need to change the organisational structure as the business expands and how this might affect the business
- Describe types of organisation structure: by function, by product, by market, by systems
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