BusinessStudies.net - GCSE Revision for AQA Business Studies

4.1a Organisation Structures

This section explains how a business is organised to manage its staff

Organisational Structures

How a business structures itself.

It allows each person to know their role:

Structure diagram - Managing Director Structure diagram - Directors Structure diagram - Managers Structure diagram - Supervisors Structure diagram - Operators

Click on a layer in the diagram to show its description

Managing Director

The director in overall charge of the business. Establishes the overall targets and long-term plans for the business

Directors

With the Managing Director / CEO, they establish overall targets and long-term plans for the business. Will usually have a specific role within the organisation (e.g. Sales Director)

Managers

Establish short-term targets to achieve long-term plans set by directors. Use employees to achieve targets. There may be additional management layers. A manager will usually have a specific role within the organisation (e.g. Sales Manager).

Supervisors

Help managers achieve their targets by taking simple decisions and looking after small teams.

Operatives

Carry out basic duties and specific tasks set by the supervisors. They do not manage any other staff.

Tall vs Flat Heirarchy

Tall

Tall heirarchy

Some businesses will have many layers of management, creating a long chain of command. Each manager has a narrow span of control.

Advantages

Managers have fewer staff to manage, so can do so more effectively

Disadvantages

Communication between the top and bottom of the chain can be difficult and inefficient

Flat

Wide heirarchy

Some businesses will have few layers of management, creating a short chain of command. Each manager has a wide span of control.

Advantages

Communication between the top and bottom can be fast and efficient

Disadvantages

Managers may find it difficult to manage a large number of staff

Delayering

Delayering diagram