Organisational structure refers to the levels of management and division of responsibilities within an organisation.

In simpler terms organisation structure is the break down of the managers and the different departments within an organisation.

It shows who manages who and how the organisation is split up to perform different tasks.

As 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 staff.

This will change the structure

A job description outlines the responsibilities and duties to be carried out by someone employed to do a specific job.

Delegation means giving a subordinate the authority to perform particular tasks.

It is very important to remember that it is the authority to perform a task which is being delegated-not the final responsibility.

Advantages for Managers Advantages for Subordinates

•Managers cannot do every job themselves. By delegating job it means manager’s can focus on more important jobs.

•The work becomes more interesting and rewarding

•Managers are less likely to make a mistake if they have fewer task to do.

•The employee feels more important and trusted.

Managers can measure how well their staff are doing based on the work they perform.

Delegation helps to train workers and gives them better career opportunities.

Chart A

Chart B

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 manager.

So if a manager was responsible for three workers what would their span of control be?

A organisation with a long chain of command and low span of control, generally has a tall organisational structure.

This makes passing on an instruction or message to a member of staff further down the chain of command more difficult.

However with a low span of control it makes it easier for managers to manage their staff.

Flat organisational structure have a low chain of command but a high span of control in their organisations.

Communication is quicker and accurate. Because of the higher span of control, managers are more likely to delegate.

Managers have less control of workers so mistakes are more likely.

Line Managers:- Have direct authority over subordinates in their departments. They are able to make decisions in their departmental areas.

Staff 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 balance sheets.

The 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 for advertising.

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.

A 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.

A Centralised management system means that most decisions are taken at the centre of the organisation or by higher levels or management

Decisions 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 and satisfied.

Decisions are made quicker as information doesn’t have to passed on to higher managers or the board of directors first.

Functional:- Specialist departments identified earlier are responsible for decision making.

Federal: By productRegional: By area or countryProject Team: By different tasks

needed to be completed. E.g.. Designing of a plane goes to different departments.