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The way authority is distributed within an organisation fundamentally shapes how decisions are made, how quickly the business can respond to change, and how motivated employees feel. Understanding the key concepts of span of control, hierarchy, delegation and centralisation is essential for analysing organisational design.
A hierarchy refers to the arrangement of people within an organisation according to their level of authority. A hierarchical structure has multiple layers of management, each with progressively more authority as you move upward.
Key Definition: The span of control is the number of subordinates (employees) directly reporting to a single manager.
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