Organisational Structures

Top Level Management

Generally the board of directors, Chief Executive Officer (CEO) or general manager, responsible for making long-term decisions.

Middle Level Management

Usually consists of managers or supervisors, answers to top level management and controls frontline management.

Front Line Management

Employees who work directly on the product (assembly line) or directly with customers (sales staff).

Organisational Charts

illustrates accountability, distribution of responsibility and coordination between positions.

Functional Organisational Structure

Breaks up a company based on tasks required or specialisation of its workforce, divides the firm into departments consisting of marketing, sales and operations.

Product Organisational Structure

Grouped into areas according to the individual products being sold, each product has a team dedicated to its entire lifecycle.

Divisional Organisational Structure

Each section of the organisation functions as a self-contained unit and might be functional or product based, allows each division to respond more appropriately to local community needs and requirements.

Team Organisational Structure

Emphasises the use of teams to accomplish specific tasks or projects, team members are responsible for planning, decision-making, execution, fostering collaboration and flexibility.

Chain of Command

How the hierarchy of the business is set up so that each person is responsible for a specific section of the business organisation.

Span of Control

The number of employees who work directly for a manager. Higher levels of management will have a higher span of control.

Delegation

Occurs when a manager or supervisor is able to assign authority to an employee who becomes responsible for decision making.