Business Objectives & Organisational Structure (Cambridge (CIE) A Level Business): Revision Note

The importance of organisational structure

• Organisational structure outlines the reporting relationships, roles and responsibilities of employees in the organisation

• Businesses must choose a structure that allows them to effectively implement ideas and achieve objectives

  • They should consider how the structure may affect the management and effectiveness of operations and communications

• A well-designed organisational structure helps to promote clarity, efficiency and accountability

The purpose of organisational structure

• Clarifies roles and responsibilities

  • A clear structure means employees understand their job roles, what is expected of them and who they report to

  • This reduces confusion and helps staff stay focused

• Improves communication

  • Organisational charts help create clear lines of communication between managers and employees

  • This makes it easier to pass on information, give feedback and make sure everyone is informed

• Supports decision-making

  • By clearly showing who has authority at each level, the structure allows decisions to be made more quickly and by the right people

  • This helps avoid delays and overlapping responsibilities

• Helps coordinate activities

  • Structure links different departments, like marketing, operations and finance, so that they can work together effectively towards shared business goals

Attributes of an effective organisational structure