1. The Day Chocolate Company
A TALL organisation chart
One manager per function area who might be assisted by supervisors who are in charge of workers

2. Lings Car
“LINGsCARS.com is an equal partnership between my husband, Jon, and me.
He is the rear end of the pantomime horse, doing everything that is non-customer facing.
I am the face, interacting with customers.”
A FLAT organisation chart
Two managers who share the supervision of all other staff!

3. Tall Chain & Narrow Span!
More Organisational Structure theory
Tall Chain & Narrow Span!
Any problems with this structure?
Any benefits of this structure?
Mrs G / Mr A work

4. Tall Chain & Narrow Span!
Advantages
Clear lines of formal authority
Managers control fewer people.
Promotional opportunities.
Disadvantages
Slow communication
Slow decision making process
More supervisors required So
What ?

5. Tall Chain & Narrow Span!
Advantages
Clear lines of formal authority – you know who to go to, to solve a problem.
Managers control fewer people – can spend more quality time with each.
Promotional opportunities – encourages staff to improve…..
Disadvantages
Slow communication – once a decision has been made – the time it takes to go from top to bottom layer!
Slow decision making process – may have a lot of managers to discuss options with.
More supervisors required – costs money! So
What
= analysis

6. Flat …Short Chain and Wide Span.
Any benefits of this structure?
Any problems with this structure?

7. Flat….Short Chain and Wide Span.
Advantages
Fast communications
Workers have a wider job role.
Low number of managers / supervisors needed.
Less supervision of staff.
Disadvantages
Blurred lines of authority
Manager has less time for staff under their control.
Lack of promotional opportunities. So
What ?

8. Flat….Short Chain and Wide Span.
Advantages
Fast communications – decisions passed on to all – quicker reaction!
Workers have a wider job role – develop and use more skills
Low number of managers / supervisors needed – reduces costs
Less supervision of staff – more independent staff – feel trusted/motivation.
Disadvantages
Blurred lines of authority – unsure of who is responsible for different areas of the business.
Manager has less time for staff under their control – quality control becomes an issue – do the managers know what their staff are doing?
Lack of promotional opportunities – staff will look elsewhere for promotion. So
What
= analysis

9. Flat organisational businesses will use delegation….
You will need access to the internet to watch this clip
Clip via laptop
Delegation
What is it?

10. More Organisational Structure theory
Delegation
Delegation involves the passing of authority down the hierarchy.
Authority occurs when an employee is given the right to do something by their superiors.
This will:
- Free up time for management
- Motivate workers by providing them with greater responsibilities
Mrs G / Mr A work 10

11. More Organisational Structure theory
Communication flow
Communication is the exchange of information between individuals or groups
Communication can flow in different directions and in different ways both internally within a business and externally from sources outside of the business
Feedback occurs when the person sending the original message receives a response
Communication problems in the hotel industry!:
Clip via laptop
Mrs G / Mr A work 11

12. More Organisational Structure theory
Communication flow
Communication can come through a variety of communication channels:
Open channels are available to all staff members, closed channels are restricted to certain employees
Formal communication occurs through official company channels, informal communication through unofficial channels
Mrs G / Mr A work 12

13. More Organisational Structure theory
Communication flow
CHINESE WHISPERS
Your teacher will provide the person sitting at the front of the class
with a written saying. That person must whisper the saying to the next person and so on until
the last person in the class.
They must write down what they think they heard and pass it on to the teacher to read out.
You are not allowed to ask for a class member to repeat the saying.
Did the class face problems with communications?
What was the cause of this problem?
What was the result of the problem?
How could this problem be solved?
Use your understanding gained from this activity to explain how communication problems
can occur in businesses. Remember to use business terminology.
Mrs G / Mr A work 13

14. How to improve an organisation's structure?
What will it take?

15. How organisational structure affects business performance
More Organisational Structure theory
How organisational structure affects business performance
Different organisational structures suit different businesses. Firms will have to take into account:
Finance – delayering can remove a level within the hierarchy but increase the span of control.
Communication – how important is efficient communication within the organisation?
Growth – a larger business needs a more formal structure
Ownership – as the legal structure of the business changes so too will the organisational structure. A sole trader will have a different structure than a partnership
Business culture – an informal entrepreneurial culture will have a different structure than a formal organisation
Reasons for re-organisation at Business Link:
Mrs G / Mr A work 15

16. Organisational Structure
Communication
flows – are the
lines short
and efficient
Levels of
hierarchy- how
many are
necessary?
Delegation
– can it be used
to motivate
employees?
Organisational
Structure
Spans of
control –
are they
broad or
narrow?
Job allocation
– how many
people are needed
to complete
the tasks?
Workloads –
make sure that
the work is
spread evenly

17. Delayering
To reduce the size of a business hierarchy, especially in terms of a reduction in management.
This creates a flatter (less layered) organisational structure.
But what does this involve?

18. Tutor2U have more BS quizzes….
GO to the BS Blog….. Organisation Structure tag….. Find the QUIZ.
Try this quiz