Organisational structure: key terms
An organisational structure shows who reports to whom — the chain of command. Hierarchy = the layers of authority; span of control = how many people one manager supervises; delegation = passing decision authority down; centralised = decisions at the top; decentralised = decisions spread to managers/branches. Tall = many layers, narrow spans (slower communication); flat = few layers, wide spans (faster, but each manager supervises more).
Motivation: financial vs non-financial
Financial methods give direct monetary reward: remuneration (pay), bonus (lump sum for a target), commission (% of sales), promotion, and fringe benefits (non-cash perks — company car, private health, canteen). Non-financial methods raise satisfaction without pay: job rotation, job enrichment (more responsible work), autonomy (freedom over how work is done). Fringe benefits are FINANCIAL on the 1BS0 spec.
Recruitment, contracts and training
Recruitment fills a vacancy: internal (promote existing staff — cheaper, they know the firm) or external (advertise outside — new skills), using a job description (tasks) and person specification (skills). Contract types — full-time, part-time, temporary, freelance, flexible/remote — trade flexibility against cost and supervision. Training (on- vs off-the-job) raises productivity and improves retention, cutting re-recruitment costs.
Drawn from real examiner reports.
Fringe benefits are a financial method
Fringe benefits (company car, private health, canteen, gym) are perks on top of pay. Although not a direct wage, the 1BS0 spec classifies them as financial (they cost the employer and have monetary value). Asked for a non-financial method, writing "company car" scores zero. The three non-financial methods: job rotation, job enrichment, autonomy.
June 2024 Paper 2 Q7(a): many candidates gave fringe benefits for "one non-financial method of motivation" — scored zero, as the spec classifies them as financial.
Flat structure is not decentralisation
A flat structure = few layers, wide spans (a shape). Decentralisation = where decisions are taken — spread to managers, not kept at the top. A tall firm can be decentralised (branch managers decide); a flat firm can be centralised (owner decides all). Link a flat-structure drawback to the structure ("wide span → hard to supervise"); generic points score zero.
June 2024 Paper 2 Q2(e): many confused a flat structure with decentralisation; generic disadvantages not linked to the structure scored zero.
Remote working: give a business drawback
For a drawback of remote/home working, avoid trivial personal points ("power cut", "barking dog") — not credited. Credited drawbacks have business impact: reduced supervision (harder to ensure quality), lower productivity, weaker communication, and security/technology costs. Chain it: less supervision → quality slips → complaints rise → customers lost.
June 2024 Paper 2 Q3(d): unrealistic drawbacks (power cuts, barking dogs) were not credited; credited ones were lack of supervision, low productivity, poor communication.
Centralised vs decentralised: pros and cons
Keep the two sides straight. Centralised: consistent decisions and tight control, but slower and ignores local knowledge. Decentralised: faster, motivates managers, uses local knowledge, but risks inconsistency and weaker control. A common error is crediting a decentralisation benefit to a "flat structure". Tie each point to the named business.
Commission and bonus are financial methods
Classify each method correctly. Commission (% of sales) and bonus (lump sum for a target) are financial — a common slip is calling them non-financial "incentives". Job enrichment and job rotation are non-financial. Answer the exact category the question names; a financial method given for a "non-financial" mark (or vice versa) scores zero.
Performance review, not customer review
A performance review (appraisal) is a manager–employee meeting to assess the employee's work, set targets and identify training. A common trap is writing about customer reviews (ratings of a product) or advertising/brand image — these score zero. In HR, "performance" always means the employee's performance: think manager, employee, targets, training, appraisal.
June 2023 Paper 2 Q1(c): answering about customer reviews or advertising for a "performance reviews" question was more common than expected and scored zero.
Evaluate (12): weigh, don't reverse
The 12-mark Evaluate is the grade 5→9 discriminator, heavy on AO3. It needs a supported judgement — which method matters most here, and why — not two-sided description. Reversing ("if high…; if low…") is not evaluation. End with a NEW conditional verdict, not a summary.
Link every point to the case business
Generic points ("low motivation", "poor quality") with no link to the named business or the specific structure/method are not credited. Build a chain: cause → effect on the business → consequence. For a flat structure, start from "wide span of control".
Answer the exact category the question names
Read whether the question wants a financial or non-financial method, internal or external recruitment, tall or flat structure — the wrong category scores zero. Match the command word: "state" = the term, "analyse" = one chain, "evaluate" = a judgement.
An organisational structure defines who reports to whom. Key terms:
| Term | Meaning |
|---|---|
| Chain of command | the path authority travels from top to bottom |
| Span of control | the number of people one manager directly supervises |
| Delegation | passing decision-making authority to a subordinate |
| Hierarchy | the layers of management from most to least senior |
| Centralised | all key decisions made at the top |
| Decentralised | decision-making authority shared with managers further down |
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