Organisational structure: the chain of command, span of control, levels of hierarchy, tall and flat structures, delegation, and centralised and decentralised decision-making.

What this dot point is asking

WJEC wants you to understand organisational structure: how a business is arranged and how that affects the way it works. You need the chain of command, the span of control, levels of hierarchy, the difference between tall and flat structures, delegation, and centralised versus decentralised decision-making. Structure decides how decisions flow and how closely staff are managed, so it shapes communication, speed and motivation.

The building blocks of structure

Tall and flat structures

Delegation

Centralised and decentralised decision-making

Why this matters

Structure shapes communication, motivation and how quickly a business reacts, so it links to motivation (responsibility and promotion motivate staff), to communication (the chain of command is the path messages travel), and to growth (firms tend to add levels as they get bigger, which is why large firms become tall and may then try to flatten). Exam questions often ask you to compare tall and flat structures or analyse centralisation, where the trade-off between control and speed earns the marks.

Try this

Q1. State one advantage and one disadvantage of a tall organisational structure. [2 marks]

• Cue. Advantage: close supervision and a clear promotion ladder. Disadvantage: slow communication and the cost of many managers.

Q2. Explain one benefit of delegation to a business. [2 marks]

• Cue. It frees managers to focus on bigger tasks and motivates workers by trusting them with responsibility, which also develops their skills.