2.2 Organizational Structure

2.2 Organizational structure and communication

What will we study?

Analyze the main features of an organizational chart including levels of hierarchy, chain of command, span of control, flat and tall organizations
Identify why firms need to organize employees and analyze ways in which this is done
Analyze delegation and accountability
Understand the difference between centralized and decentralized structures and the factors that influence the degree of centralization or decentralization
Understand what is meant by effective communication and feedback
Analyse the advantages and disadvantages of different communication media
Evaluate their application in different settingsz

What is corporate structure?

Structuring a business

Managers need to organize their staff and keep them motivated. As a business grows in size and takes on more staff, managers need to make sure employees understand their role within the company. Organization is the way a business is structured. One method of organization is to set up departments covering the four main areas of business activity:

finance
human resources
marketing
operations

Organisation charts are diagrams that show the internal structure of the business. They make it easy to identify the specific roles and responsibilities of staff. They also show how different roles relate to one another and the structure of departments within the whole company.