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Business Studies IGCSEPDF 66
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2.2 Organisation and Management
2.2.1 Organisational Charts
Purpose:
1.
2.
Tall (narrow span of control):
○ Many levels of hierarchy.
○ Managers can closely supervise.
○ Slower communication, higher costs.
Flat (wide span of control):
○ Fewer levels.
○ Quicker decisions, cheaper.
○ May cause overworked managers.
● Shows structure of authority, responsibility, and communication.
● Clarifies reporting lines (chain of command).
Key terms:
● Level of hierarchy: a layer of authority within the business.
● Span of control: number of employees managed by one supervisor.
● Chain of command: the path through which orders are passed down.
● Delegation: passing authority to subordinates.
Types of Structures