Organisational structure
An organisational chart shows how a business is arranged: who reports to whom and the different levels of authority. It shows the chain of command (the line along which orders pass from the top to the bottom) and the span of control (the number of workers a manager is directly responsible for). A tall structure has many levels and narrow spans of control; a flat structure has few levels and wide spans.
Key idea
A wide span of control gives workers more freedom but is harder to manage; a narrow span gives closer supervision but can feel controlling.
Roles in management
Delegation means passing authority down to a subordinate to carry out a task, while the manager keeps overall responsibility. It saves the manager time and motivates staff, but only works if employees are trusted and trained. The functions of management, described by Fayol, include planning, organising, commanding, coordinating and controlling.
Example
A shop manager may delegate stock ordering to a supervisor. The supervisor gains responsibility and the manager has more time, but the manager is still accountable if stock runs out.
Leadership styles
An autocratic leader makes decisions alone; a democratic leader involves staff in decisions; a laissez-faire leader gives staff freedom to decide. The best style depends on the situation, such as how urgent a decision is and how skilled the workers are. An autocratic style may suit an emergency, while a democratic style often works well with experienced, motivated staff.
Remember
- Chain of command = line of authority top to bottom.
- Span of control = workers directly managed by one person.
- Delegation passes authority but not overall responsibility.