Business A2 · Human resource management. The idea in plain words, the rules to remember, the mistake to avoid and a worked example, written and checked by Mega Lecture.
An organisational structure shows who is responsible for what, who reports to whom and how communication flows. A good structure fits the firm's objectives: it is flexible, allows growth and leaves room for intrapreneurship (employees developing new ideas inside the firm).
Structures can be organised by function, by product or by geographical area, or as a matrix of project teams drawn from several functions. A tall (narrow) hierarchy has many levels and narrow spans of control; a flat one has few levels and wide spans. Delayering removes levels, so the chain of command gets shorter and spans get wider.
Delegation passes authority to a subordinate, but the manager stays accountable for the result. So delegation needs trust, and too much checking defeats it.
Students say that when a task is delegated, the responsibility for failure passes completely to the subordinate. Authority to do the task is passed down, but the manager who delegated is still accountable to their own superior.
Answer: 85 employees in total, with 64 at the lowest level.
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