Explaining what an organisational structure is, going through organisation chart and giving examples of different kinds of organisational structures.

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Task three – organisational structure

In this task I will be explaining what an organisational structure is, going through organisation chart and giving examples of different kinds of organisational structures. I will also be going through a chain of command and give an example of one.

Organisational structure


An organisational structure is when employees are grouped into functional areas, which relate to their job, so that people doing similar jobs work in the same area. These areas are then linked in an overall structure. In a large organisation you are likely to find more functional areas than in a small or medium- sized one. The way in which an organisation is structured is shown on its organisation chart.

Organisation chart

An organisation chart is a diagram, which shows the structure of the organisation. It shows the job titles of employees and their relationship with each other .At the top of the chart are the more senior staff. They have more responsibility than those lower down.

  • Horizontal links on a chart show staff who work at the same level of each other and who relate to each other.

  • Vertical links on a chart show the staff for which a particular manager or supervisor is responsible.

Jaguars organisation chart  



Above the organisation chart shows where certain people should be for a certain job .It also shows who is responsible for which jobs or targets .It shows who is in charge of whom, who is responsible to whom, and how each worker relates or fits into the business.

Hierarchical structures

Jaguar uses the hierarchical structure. They feel that the hierarchical structure benefits them better than other organisational structures.

Hierarchical structures are sometimes called pyramid structures because at each level downwards there will be more employees. If you draw this, you will make a pyramid shape. The more hierarchical the structure, the steeper the pyramid will be.

Hierarchical organisation

A hierarchical organisation is taller than a flat structure. It has many levels. The word  ‘hierarchy’ means a system whereby grades or classes are ranked one above the other’.

Jaguar is a hierarchy .If you count the number of levels in the production department (count the longest line) you will see there are 7 levels of hierarchy at Jaguar. And remember that above the production director is the managing director so there are 8 levels altogether.

The employees of each level in an organisation chart have more responsibility and authority than the employees below. These are called levels or layers of hierarchy. Jaguar has 4 layers of hierarchy.

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Hierarchical structure is a traditional structure used by large businesses .The main features are:

  • A large number of layers, each responsible to, and controlled by the level above

  • As you go up the structure, the number of people decreases.

  • The managing director (MD) is at the top, and is responsible for the success or failure of the business

 Flat structures

Some companies use a flat structure. E.g. cybernet has a flat structure. Even ...

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