2.2 Organisation and Management

2026 Syllabus Objectives

By the end of this topic, you should be able to:

2.2.1 — Organisational Charts

  • Understand simple hierarchical structures including levels of hierarchy, span of control, and chain of command (e.g. tall and flat structures)
  • Describe the roles and responsibilities of directors, managers, supervisors, and other employees, and explain how they relate to each other

2.2.2 — The Role of Management

  • Explain the five functions of management: planning, organising, coordinating, commanding, and controlling
  • Explain why delegation is important and understand the balance between trust and control

2.2.3 — Leadership Styles

  • Describe the features of autocratic, democratic, and laissez-faire leadership styles
  • Recommend and justify an appropriate leadership style for a given business situation

2.2.4 — Trade Unions

  • Explain what a trade union is and describe the effects on employees of being union members

Main Content

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2.2.1 Organisational Charts

What is an Organisational Chart?

An organisational chart (often called an "org chart") is a diagram that shows the structure of a business. It maps out:

  • Who works in the business
  • What position or role each person holds
  • Who is in charge of whom
  • How different parts of the business connect to each other

Think of it like a family tree — but for a company. It is a formal communication tool that makes it clear who you should speak to for different matters and who has authority over others.

Key Structural Concepts

Levels of Hierarchy

The hierarchy refers to the different layers of seniority (importance/rank) within a business, from the most senior person at the top to the most junior workers at the bottom. Each layer is called a level of hierarchy.

  • The more levels there are, the taller the structure
  • The fewer levels there are, the flatter the structure

Chain of Command

The chain of command is the official path through which orders, instructions, and information travel — always flowing downward from the top of the hierarchy to the bottom.

  • It shows who reports to whom
  • It shows who is responsible for making decisions
  • It keeps communication clear and organised

Example: A CEO gives instructions to a Marketing Manager, who passes them down to a Sales Supervisor, who then tells the sales staff what to do. That path — CEO → Marketing Manager → Sales Supervisor → Sales Staff — is the chain of command.

Span of Control

The span of control is the number of subordinates (workers directly below) that one manager or supervisor is directly responsible for managing.

  • A wide span of control means one manager oversees many workers (e.g. 8 people)
  • A narrow span of control means one manager oversees fewer workers (e.g. 2–3 people)

The span of control and chain of command are closely linked:

  • A narrow span of control leads to more layers of management → a tall structure
  • A wide span of control leads to fewer layers of management → a flat structure

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