Organisational structures and span of control
An organisational structure shows the formal chain of command and levels of hierarchy within a business, usually drawn as an organisation chart. Hierarchy means the levels of authority from the top of the business down to the bottom.
Before you start
No specific prerequisites - this is a good place to start.
Method
- Identify the key terms used in the case: hierarchy, chain of command, span of control, levels of hierarchy.
- Learn to read an organisation chart: count the levels to find the hierarchy, and count the direct reports below one manager to find that manager's span of control.
- For state or identify questions, give the correct term or number straight from the chart, with no explanation required.
- For explain questions on tall versus flat structures, give one point about span of control or chain of command and link it to a consequence, such as speed of communication or cost of management.
- Learn that a wide span of control usually means fewer management layers and lower management wage costs, but less close supervision of each employee.
- Learn that a narrow span of control usually means more layers, closer supervision, but a slower chain of command and higher management wage costs.
- For evaluate questions, weigh the advantages of a tall structure against a flat structure for the specific business in the case, considering its size, the skill level of its staff, and how much control it needs.
Worked example
A furniture manufacturer has grown from 10 to 60 employees. Currently one production manager directly supervises all 40 factory workers, with no supervisors in between. Explain one problem the business might face with this span of control.
- Identify the current span of control: 40 direct reports to one manager, which is very wide.
- Identify what a manager needs to do for each direct report: give instructions, monitor performance, and deal with problems as they arise.
- Link the wide span to the time available: with 40 direct reports, the manager has very little time to spend individually with each worker.
- State the consequence: the quality of supervision falls, workers may not get feedback or support quickly, and mistakes could go unnoticed, harming productivity.
- Write the explained answer, combining the wide span of control with its effect on supervision and productivity.
Practice questions
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Q1State what span of control measures.Show answer
Answer: The number of subordinates who report directly to one manager.
Q2Identify whether a business with 3 levels of hierarchy and wide spans of control is a tall or a flat structure.Show answer
Answer: Flat.
Q3State one feature of a tall organisational structure.Show answer
Answer: Many levels of hierarchy and narrow spans of control.
Q4Give one advantage of a wide span of control.Show answer
Answer: Fewer management levels are needed, which reduces management wage costs, and employees are given more responsibility.
Q5Explain what chain of command means.Show answer
Answer: The line of authority through which instructions pass down from senior managers to employees at each level of the hierarchy.
Q6State one disadvantage of a narrow span of control.Show answer
Answer: More levels of management are needed, which increases management costs and can slow down communication down the chain of command.
Q7A shop owner supervises 4 shift leaders, and each shift leader supervises 8 sales assistants. State the shop owner's span of control.Show answer
Answer: 4.
Exam-style questions
Written in the style of a GCSE Business exam paper, with a full mark scheme.
Explain one advantage and one disadvantage of a business changing from a tall to a flat structure.
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A regional bakery chain has grown to 12 stores. It currently has a tall structure: area managers, then store managers, then assistant managers, then staff, with each area manager supervising only 2 store managers. The owner is considering delayering to remove the assistant manager level and widen spans of control. Evaluate whether the bakery chain should delayer its structure.
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See real GCSE Business past-paper questions, with official mark schemes →
Free printable worksheet
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