Organizational Structure

Organizational structure refers to the levels of management and division of responsibilities

within a business. They can be represented on organizational charts (left).
 

Advantages:
 All employees are aware of which communication channel is used to reach them with
messages
 Everyone knows their position in the business. They know who they are accountable to
and who they are accountable for
 It shows the links and relationship between the different departments
 Gives everyone a sense of belonging as they appear on the organizational chart

The span of control is the number of subordinates working directly under a manager in the

organizational structure. In the above figure, the managing director’s span of control is four. The
marketing director’s span of control is the number of marketing managers working under him (it
is not specified how many, in the figure).
The chain of command is the structure of an organization that allows instructions to be passed
on from senior managers to lower levels of management. In the above figure, there is a short
chain of command since there are only four levels of management shown.
Now, if you look closely,there is a link between the span of control and chain of command. The
wider the span of control the shorter the chain of command since more people will appear
horizontally aligned on the chart than vertically. A short span of control often leads to long chain
of command. (If you don’t understand, try visualizing it on an organizational chart).
Advantages of a short chain of command (these are also the disadvantages of a long chain of
command):
 Communication is quicker and more accurate
 Top managers are less remote from lower employees, so employees will be more
motivated and top managers can always stay in touch with the employees
 Spans of control will be wider, This means managers have more people to control This is
beneficial because it will encourage them to delegate responsibility (give work to
subordinates) and so the subordinates will be more motivated and feel trusted. However
there is the risk that managers may lose control over the tasks.
 

Line Managers have authority over people directly below them in the organizational structure.
Traditional marketing/operations/sales managers are good examples.
Staff Managers are specialists who provide support, information and assistance to line
managers. The IT department manager in most organisations act as staff managers.