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NotesBusiness ManagementTopic 2.2Key structural concepts
Back to Business Management Topics
2.2.31 min read

Key structural concepts

IB Business Management • Unit 2

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🔗 Key Structural Concepts

Big Idea: Delegation is when a manager gives authority to a subordinate to carry out a specific task. The manager remains accountable but the subordinate gains responsibility.

Delegation

  • Advantages: frees up manager time for strategic tasks, motivates employees (shows trust), develops employee skills, leads to faster decision-making
  • Disadvantages: risk of poor quality if employee lacks skills, manager loses some control, employee may feel overburdened, some tasks should not be delegated (e.g. confidential matters)

[Diagram: delegation-chain] - Available in full study mode

Span of control

The number of subordinates directly managed by one person.

  • Wide span: one manager supervises many people -- suitable for experienced, motivated teams doing routine work
  • Narrow span: one manager supervises few people -- suitable for complex work requiring close supervision and support

[Diagram: span-of-control] - Available in full study mode

Chain of command

The line of authority from the most senior person to the most junior.

  • Long chain: many levels -- information may be distorted as it passes through multiple layers
  • Short chain: few levels -- faster, more accurate communication
Delegation, span of control and chain of command are all connected. More delegation = wider span possible = fewer levels needed = shorter chain of command. 🔗

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the term delegation. [2 marks]

Related Business Management Topics

Continue learning with these related topics from the same unit:

2.1.1Functions of HRM
2.1.2Recruitment and selection
2.1.3Training and development
2.1.4Appraisal and performance management
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