Study Notes
Organisational structure basics
- Level:
- GCSE, AS, A-Level
- Board:
- AQA, Edexcel, OCR, IB
Last updated 22 Mar 2021
The way in which a business is organised has a direct effect on its competitiveness. For a business to be able to achieve its aims and objectives, it needs to organise its people in a suitable way – that is known as the “organisational structure”.
The organisational structure of a business is important because it determines:
- Authority and responsibility – who is responsible for whom and who is in charge?
- Individual job roles and titles
- The people to whom others are accountable
- The formal routes through which communication flows in the business
One way to think of the organisation structure is of an explanation of the “command and control” system in a business.
The organisation structure of a business will depend on several factors, including:
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