Organisational structures and communication

Overview

Hierarchical and flat structures, spans of control, centralisation and decentralisation, and the effects of too little or too much communication and how to overcome barriers.

What you need to know

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Questions from this subtopic

Each one with the model answer underneath.

1. 1

   What is an organisational structure?

   Model answer

   An organisational structure shows how jobs, authority and communication are arranged in a business. An organisation chart shows who reports to whom.

2. 2

   What is a hierarchical structure?

   Model answer

   A hierarchical structure has many layers of management, with authority passing down from the top. Each manager usually has a narrow span of control.

3. 3

   What is a span of control?

   Model answer

   A span of control is the number of employees who report directly to one manager. A wide span means a manager supervises many people.

4. 4

   What are the advantages and disadvantages of a hierarchical structure?

   Model answer

   A hierarchy gives clear roles, close supervision and a ladder of promotion. Communication is slow through many layers, and decisions take longer.

5. 5

   What is a flat structure?

   Model answer

   A flat structure has few layers of management and wide spans of control. Staff have more responsibility and closer contact with senior managers.

6. 6

   What are the advantages and disadvantages of a flat structure?

   Model answer

   A flat structure gives fast communication and lower management costs. Managers may be overstretched, and there are fewer chances of promotion.

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