Organisational Structures

An organisational structure defines how a business is arranged — who reports to whom, how decisions are made, and how communication flows. Getting the structure right is essential for efficiency, communication, and employee satisfaction.

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What Is an Organisational Structure?

An organisational structure is the way in which a business arranges its employees, management, and departments to achieve its objectives. It is usually shown as an organisation chart.

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Key Terms

Term	Definition
Hierarchy	The levels of authority within an organisation, from top management to shop floor
Span of control	The number of employees directly managed by one person
Chain of command	The line of authority from the top of the organisation to the bottom
Delegation	Giving authority to a subordinate to carry out a task
Centralisation	Decision-making is concentrated at the top of the organisation
Decentralisation	Decision-making is spread to lower levels or individual departments
Delayering	Removing levels of management to flatten the structure

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Tall (Hierarchical) Structures