Learn: Organisational Structure — What It Shows

Welcome!You've already learned about the HR function and how it links to other areas of business like operations, marketing, and finance. Today, we'll build on that knowledge and explore organisational structure—an important aspect of how businesses are organised and managed. Let's get started!

What is Organisational Structure?An organisational structure outlines how roles and responsibilities are divided within a business. It shows who employees report to and how communication flows between different levels and departments. A clear structure helps a business operate efficiently and ensures employees know their roles.

Why Organisational Structure is ImportantOrganisational structure matters because it affects decision-making, communication, and how quickly tasks are completed. The right structure helps avoid confusion, improves efficiency, and ensures everyone understands their responsibilities.

Key Features of Organisational StructureOrganisational structure includes several key features:Hierarchy: Shows levels of authority in the business.Chain of command: The flow of instructions from the top to the bottom of the organisation.Span of control: The number of people a manager is responsible for.Delegation: Assigning tasks or responsibilities to others.

Types of Organisational StructuresThere are two main organisational structures:Flat Structure: Few levels of hierarchy, wider spans of control. Decisions are made quickly, but managers may find it harder to supervise large teams.Tall Structure: Many levels of hierarchy, narrower spans of control. Managers can supervise their teams more closely, but decisions may take longer due to the longer chain of command.

Advantages and DisadvantagesEach type of organisational structure has pros and cons:Flat Structure: Faster decision-making and better communication, but can lead to overworked managers.Tall Structure: Clearer roles and better supervision, but slower decision-making and higher costs.

Review Time!Great work! You've learned about organisational structure, its features, types, and their pros and cons. Now let's test your understanding with a few questions.