Organisational structures & different way work (OCR GCSE Business): Revision Notes

3.2 Organisational structures and different ways of working

Organisational structures

Organisational structures are the way that employees and departments are organised and who reports to who. An organisation chart is a diagram that shows this, and the roles and relationships between all employees.

• Span of control is the number of employees managed directly by a manager
• Chain of command is the lines of authority in a business
• Subordinates are the employees that a manager is responsible for
• Delegation is where a job or responsibility is given to a subordinate
• Authority is the power to control others or decisions in a business

Tall and flat organisational structures

Tall organisational structures have lots of levels of hierarchy and narrower spans of control.

Advantages	Disadvantages
Less employees for managers to control	Narrow span of control
More opportunities for promotion	More expensive
Allows close employee supervision by managers	Slower communication

Flat organisational structures have fewer levels of hierarchy and wider spans of control.

Advantages	Disadvantages
Staff have feeling of equality	Less opportunities for promotion
Faster communication	Less employee supervision by managers
Business can respond to changes more quickly	Wider span of control for managers means more work

Why do businesses have different organisational structures?

• Good communication: If a business wants everyone to know what's going on, they might choose a flat structure where it's easier to talk to each other.
• Different jobs: If a business has many different types of jobs, they might need more managers to make sure everyone is doing their job correctly. That means they might choose a tall structure.
• Different ways of working: If a business wants its workers to be creative and come up with new ideas, they might choose a flat structure where everyone can share their ideas easily.

Ways of working

Type	Definition	Advantages	Disadvantages
Full-time	Working for the same employer for over 35 hours per week.	Steady income More employee benefits Better job security	Limited flexibility Less free time More stress
Part-time	Working for the same employer for fewer hours per week than a full-time employee.	More flexibility More free time Can balance work and personal commitments	Less income Less job security Fewer employee benefits
Flexible-working	Having the ability to work outside of traditional working hours or in a non-traditional work location.	Flexible work hours and location Easier to balance work and personal life Increased productivity	Requires good time management skills May require more self-discipline Harder to communicate
Temporary work	Working for an employer for a set period of time, such as for a specific project or to cover a temporary absence of a regular employee.	Can gain work experience May lead to permanent employment More flexibility in work location	Limited job security May not receive employee benefits May not have a steady income.
Working from home	Working remotely from a home once or another location outside of the workplace.	Flexible work hours and location Easier to balance work and personal life Increased productivity	Requires good time management skills May require more self-discipline Harder to communicate
Working whilst mobile	Working remotely from different locations, often using mobile technology.	Flexible work hours and location Easier to balance work and personal life Increased productivity	Requires good time management skills May require more self-discipline Harder to communicate
Self-employed	Working for oneself, rather than for an employer.	Flexible work hours and location Choose the work you want to do Keep all profits	Limited job security May not have a steady income Responsible for managing finances
Zero-hours contract	Where the employer doesn't provide any minimum working hours, and the employee is called in when needed.	Flexibility for the employer and employee Cost effective for business	Limited job security No guarantee of work Dicult to plan personal commitments
Flexi-time	Having the ability to choose when to start and finish work, within a set range of hours determined by the employer.	Flexible work hours and location Easier to balance work and personal life. Increased productivity	Requires good time management skills May require more self-discipline. Harder to communicate
Shift working	Working in shifts, or a schedule of work hours that rotate regularly, often including evening or night shifts.	Oers flexibility for both the employer and employee Good for workers who prefer to work at certain times Necessary for certain industries such as healthcare	Can disrupt sleep patterns May have a negative impact on personal life Can lead to burnout and stress