2.2.5

The Impact of Organisational Structure on Managing

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The Impact of Organisational Structure on Managing

Organisational structure has implications for how an organisation is managed.

Illustrative background for Number of employees monitoredIllustrative background for Number of employees monitored ?? "content

Number of employees monitored

  • Having a flat organisational structure normally means that each manager is responsible for more employees. This can make it harder for a manager to monitor each employee really closely.
Illustrative background for CommunicationIllustrative background for Communication ?? "content

Communication

  • If communication has to go through lots of layers, then it will be slower. This can make it hard to make changes or pass on a message.
  • In a flat organisational structure it can be easier for directors to make changes happen faster. Employees low down the hierarchy can communicate problems more quickly.
  • However, if the span of control is too wide then it can negatively affect communication because it is harder for managers to communicate with all the people they are responsible for.
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Chain of command length

  • Having a flatter organisational structure may mean managing more people but it creates a shorter chain of command, making communication between layers easier.

Jump to other topics

1Understanding Business Activity

1.1Business Activity

1.2Classification of Businesses

1.3Enterprise, Business Growth & Size

1.4Types of Business Organisation

1.5Business Objectives & Stakeholder Objectives

2People in Business

3Marketing

3.1Marketing & the Market

3.2Market Research

3.3Marketing Mix

3.4Legal Controls

4Operations Management

5Financial Information & Decisions

6External Influences on Business Activity

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