Organisational Structure

The organisation chart

An organisation chart shows the formal structure of a business — who reports to whom, lines of authority and responsibility. Key terms:

Hierarchy — the levels of management from top to bottom.
Chain of command — the line along which authority and instructions pass.
Span of control — the number of subordinates a manager directly controls.
Delegation — passing authority (not ultimate responsibility) down the hierarchy.
Accountability — being answerable for the use of delegated authority.