U1.24 — Features of Organisational Structures
Overview
Dotpoint 24: features of organisational structures, including: chain of command, span of control and delegation
An organisational structure is not just “who sits where” — it controls how decisions move, who supervises who, and how work gets done. Three key features are:
- Chain of command
- Span of control
- Delegation
⛓️ Chain of Command
Chain of command is the line of authority and responsibility that shows who reports to whom and how instructions and decisions move through the business.
A clear chain of command reduces confusion because staff know who to ask, who approves, and who is accountable.
Long vs short chain of command
A long chain of command has more management layers between top management and frontline staff. A short chain of command has fewer layers, so information travels through fewer people.
Long chain of command (many management levels)
Advantages
- Clear reporting lines and authority
- Specialised management roles can improve control and coordination
- Decisions may be more consistent because approvals are centralised
- Useful in high-risk environments where strict procedures matter
Disadvantages
- Slower communication because messages travel through more levels
- Decisions can be delayed while approvals move up and down
- Information can be distorted or “watered down” between levels
- Higher wage costs due to more managers
Short chain of command (fewer levels)
Advantages
- Faster communication and quicker decisions
- Fewer “handoffs” so messages are clearer
- More direct access to leaders (better feedback and responsiveness)
- Lower management costs in many cases
Disadvantages
- Managers may be overloaded because there are fewer levels to share responsibility
- Less formal control can cause inconsistency if expectations aren’t clear
- Employees may be unsure who approves what if roles aren’t defined
- Not always suitable for strict compliance or safety-focused industries
Examples
- WA Police / emergency services: often have a longer chain of command because clear authority is essential in high-risk situations.
- Small cafés / small trades: usually have a short chain of command — often the owner makes decisions directly.
📏 Span of Control
Span of control is the number of employees a manager or supervisor can directly manage.
There is no “perfect” number — it depends on the job and the type of work being supervised.
Why the type of work matters
The type of work determines how much day-to-day input a manager must provide. When work is complex or changes often, staff need more coaching, more checking, and quicker problem-solving. That means managers should supervise fewer people so they can give enough attention to each person.
When work is routine and predictable, staff can follow clear procedures and work more independently. The manager spends less time correcting mistakes and solving unexpected problems — so the span of control can be wider.
- Complex, skilled, changing work → narrower span (more guidance, feedback and safety checks are needed)
- Routine, predictable work → wider span (tasks are standardised and easier to monitor)
Narrow vs wide span of control
Narrow span of control (small team per manager)
Pros
- closer supervision and support
- stronger communication within the team
- greater accountability (manager knows exactly who is doing what)
- can improve motivation if staff feel supported
Cons
- more managers are needed → higher costs
- can lead to micromanagement
- decisions can slow down due to “asking up” for approvals
Wide span of control (large team per manager)
Pros
- fewer managers needed → lower costs
- flatter structure → faster communication between levels
- more autonomy for employees
- efficient for large-scale operations
Cons
- harder to supervise and coach individuals
- communication can break down
- accountability can drop if the team feels “too big”
- employees may feel less supported
A strong memory tool: MOST
Span of control is influenced by MOST:
- M — Manager: experienced managers can handle more people
- O — Organisational culture: control-focused cultures have narrower spans; trust-based cultures allow wider spans
- S — Subordinates: skilled staff need less supervision
- T — Task: complex or urgent tasks need closer supervision
Examples
- Bunnings warehouse team leaders: often manage a wider span because roles are fairly routine and structured.
- Surgical theatre / emergency department shift leaders: usually manage a narrower span because work is high-risk, time-critical, and mistakes have serious consequences.
🧩 Delegation
Delegation is the assignment of responsibility and/or authority to another person to complete a task.
Delegation shifts decision-making downwards, but the manager who delegates is still accountable for the final outcome.
Why businesses delegate
- develop employee skills
- build motivation and trust
- speed up decisions (not everything must go to the top)
- free managers to focus on higher-priority work
When delegation goes wrong
Delegation can create frustration if:
- employees are not trained or confident
- tasks are unclear
- managers delegate work but not authority (staff can’t actually decide anything)
- staff feel they are doing “manager work” without recognition or reward
Examples
A manager at a retail store may delegate:
- rostering to a senior team member
- handling customer complaints to a shift supervisor
- stock ordering to a department leader
This speeds up operations — but the manager remains accountable if things go wrong.
🔗 Bringing the Three Features Together
These three features work as a system:
- Chain of command sets the reporting lines and shows who has authority to make decisions.
- Span of control shapes how much support and supervision managers can provide.
- Delegation determines how much decision-making is pushed down, which affects speed and motivation.
If a business wants speed and flexibility
Businesses in fast-changing markets often want problems solved quickly and decisions made close to the customer. To support this, they usually aim for:
- shorter chain of command so messages and decisions travel through fewer layers
- wider span of control (where appropriate) to keep the structure flatter and reduce “too many bosses”
- strong delegation so team leaders can act without waiting for head office approvals
This works best when staff are well-trained, roles are clear, and managers still monitor performance and standards.
If a business needs strict control and safety
Some organisations prioritise safety, compliance, and consistent procedures over speed. In these settings, errors can be costly or dangerous, so they may prefer:
- longer chain of command with clear approvals and formal reporting
- narrower span so supervisors can closely monitor performance and safety
- careful delegation where authority is limited and supported by checklists, training and sign-off requirements
The trade-off is often slower decisions — but higher consistency, stronger accountability, and reduced risk.
🏙️ Perth Case Study — Amazon Warehouse Operations
A Perth Amazon-style warehouse is a strong case study because the operation only works when all three features are aligned: a clear chain of command to coordinate shifts and solve issues fast, the right span of control so supervisors can genuinely support teams, and smart delegation so decisions happen on the floor (without waiting for senior managers every time).
Chain of command
- Site leadership sets targets and oversees operations.
- Area managers run sections of the warehouse (e.g., receiving, picking, packing, dispatch).
- Team leaders and shift supervisors manage teams on the floor and report issues upwards.
This matters because when something goes wrong (a safety hazard, scanning errors, late trucks, bottlenecks), staff must instantly know who to report to and who can approve a change.
Span of control
- In routine, standardised tasks (scanning, packing, sorting), supervisors can manage a wider span because work is consistent and measurable.
- In higher-risk or fast-changing areas (machinery zones, loading bays, peak periods), managers often use a narrower span so coaching, checking and safety supervision stay strong.
If one supervisor has too many people, communication drops, coaching reduces, and mistakes can rise — which impacts both safety and productivity.
Delegation
- Team leaders can be delegated responsibility for meeting hourly targets in their zone.
- Shift supervisors can be delegated authority to move labour between areas if demand changes.
- Safety representatives can be delegated responsibility to report hazards and stop unsafe work.
Delegation keeps the warehouse moving quickly, but senior managers remain accountable for outcomes such as safety, productivity and customer delivery performance.
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Biz Fact: Microsoft commonly uses wider spans of control, reflecting highly skilled employees who require less direct supervision.