Transcript Key elements of organisational structure

Textbook pages 135-137
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Level of hierarchy: layers of management and
supervision in an organisation
Chain of command: lines of authority in an
organisation
Lines of communication: how information is
passed around an organisation
Span of control: number of subordinates one
manager/supervisor is responsible for
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The number of layers in the structure
Many layers suggests a need for close
supervision
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Few layers suggests that employees are given
authority to make decisions
Organisations with traditional cultures tend to
have many levels in the hierarchy. Each
manager/supervisor has limited responsibility
Small, dynamic businesses tend to have fewer
Layers and managers/supervisors have more
responsibility
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Wide span = directly responsible for many
employees/subordinates
Gives employees chance for more authority to
make decisions
Narrow span = directly responsible for a small
number of employees/subordinates
Gives employees less opportunity for decisionmaking.
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Read the case study “Who’s in charge?” and
answer the questions
Key Term:
Delegation: passing of authority to make
decisions to employees further down the
organisational structure
As a business grows, the entrepreneur needs to
delegate authority to other people in the
organisation because they will not have enough
time to do everything.
This process of delegation is very difficult and
potentially dangerous (Sausage Wars) and
should be monitored closely in the early stages.
Read through the cast study : Pigott Pastries and
answer the questions