Unit 2: Business Structure and Control | Organizational Structure

Organizational Structure refers to the levels of management and division of responsibilities
within an organization.

Advantages of an Organizational chart:

  • Gives everyone in the department a sense of belonging.
  • Employees can see who they should take orders from.
  • It shows links and relationships between different departments within the organization.
Advantages of short chains of command:
  • Communication is quicker and more accurate - as there are less levels to pass through. 
  • Span of control will be wider, increases motivation in managers as more trust is put into them.
Disadvantages of wide span of control:
  • Managers could lose control of what their subordinates are doing.
  • If the subordinates are poorly trained, they could make many mistakes.

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