The Impact of Organisational Structure on Managing
Business: Cambridge International GCSE (2027 Exams), topic 2.2.5
The Impact of Organisational Structure on Managing
Organisational structure has implications for how an organisation is managed.
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.
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.
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.
Test yourself on The Impact of Organisational Structure on Managing
How does the number of layers of organisation affect communication?
Which factors affect how an organisation is managed?