"Organisational design" (Theme 1: A level Business Edexcel)

LESSON 15
.Organisational design
Refers to a diagram or a chart which shows the lines of authority and layers in the hierarchy
of the business

.Structure
Hierarchy
Is a system in a business where employees are ranked due to their status and authority
Those at the top are more important than those at the bottom
Employees during their career will seek to move up the hierarchy to improve their salary and
working conditions.

Chain of command
Is the flow of information power and authority through the
organization.
The ones at the top have more power and authority and
can delegate tasks to those subordinate to them.


Span of control
Is a number.
E.g. An employee that works as a Head of Department in a school may have 6 teachers
working for them. Their span of control is therefore 6.
In a hierarchy it’s the number of people that a manager is responsible for.




Small span of control, tall hierarchy and jobs will be
very specialised.




Wide span of control, flat hierarchy and
employees will be given more responsibility
and larger roles.