Learning objectives
Explain what an organisational structure is for and what makes one effective, such as flexibility, fit with the needs of the business, room for growth and support for intrapreneurship.
Compare functional, hierarchical (tall and flat) and matrix structures and explain why some businesses organise by product or by geographical area.
Explain why and how structures change, for example through growth or delayering.
Interpret an organisation chart to identify levels of hierarchy, the chain of command and each manager's span of control.
Distinguish line managers from staff specialists, such as HR or legal advisers, and analyse why conflict can arise between them.
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