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2. Organisational structure

The organisational structure
The organisational structure is the framework for organising employees. It defines areas of responsibility, sets out the chain of command and the span of control. The formal structure is important so that employees can identify their role within the company. It shows them who and what they are responsible for and also to whom they are responsible. An organisation chart illustrates the formal structure of a company.
The chain of command
the chain of command represents the hierarchy in the business and shows how orders flow through the management levels of the organisation. Orders are communicated from top to bottom and information is communicated up.
The span of control
the span of control is the number of employees who report directly to the manager above them. The span of control is wide if a manager is responsible for a large number of people or narrow if the manager has responsibility for only a few subordinates. The width of the span of control depends on the abilities of managers and employees and the type of work. A skilful and experienced manager can control a large number of people. Skilled, experienced and motivated employees can operate with a large span of control. If the jobs are routine and require little decision-making, a wide span of control is possible. Complex work and highly skilled