Organisational structures - AQAHierarchical and flat organisational structures

An organisational structure is how a business organises its staff to represent the different layers of management. This information can be displayed in the form of a chart. There are two main types of organisational structure used in businesses – hierarchical (or tall) and flat.

Hierarchical structure

A hierarchical structure is often also referred to as a ‘tall’ organisational structure. A hierarchical structure has many layers of management, and businesses with this structure often use a ‘top-down’ approach with a long chain of command. In a hierarchical structure, managers will have a narrow span of control and a relatively small number of subordinates (staff).

Flat structure

A flat structure is an organisational structure with only a few layers of management. In a flat structure, managers have a wide span of control with more subordinates, and there is usually a short chain of command. Flat organisational structures are commonly used by smaller businesses or those adopting a more modern approach to management.

Key terms in organisational structure

There are a number of key terms that apply to organisational structures:

• span of control - the number of staff that a manager has responsibility for
• chain of command - the route by which instructions and communications flow from the top to the bottom of a business, explaining who is answerable to whom
• delayering - a process where a business removes layers of its management to make its structure more flat
• delegation - a process where tasks are given to members of staff, where often managers give tasks to employees further down the chain of command
• subordinates - members of staff below a manager in the chain of command