Cambridge IGCSE Business (0264) syllabus reference: 2.2.1 to 2.2.5
Success criteria - by the end of this topic you can:
- interpret organisational charts using levels of hierarchy, chain of command and span of control
- explain flexible working and compare part-time and full-time employees
- describe the functions of management and the role of delegation
- compare leadership styles and recommend one for a situation
- explain downsizing, redundancy and the role of trade unions
Organisational structure
Businesses are divided into functional areas: operations, marketing, finance and human resources.
Key terms
Levels of hierarchy - the number of layers of management in a business.
Chain of command - the route along which instructions pass from the top of the hierarchy downwards.
Span of control - the number of subordinates directly controlled by one manager.
Tall and flat structures
| Tall structure | Flat structure |
|---|
| Levels of hierarchy | Many | Few |
| Chain of command | Long | Short |
| Span of control | Narrow | Wide |
| Strengths | Close supervision; many promotion opportunities | Faster communication; more delegation and trust |
| Weaknesses | Slow communication; messages distorted | Managers may be overloaded; less supervision |
🔒 Also in the full notes
- Flexible working, part-time and full-time employees
- The functions of management
- More key terms
- Leadership styles
- Downsizing, redundancy and trade unions
- Real-world example
- Common mistakes that lose marks
- Exam tips and analysis chains
- Check your understanding questions
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