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ACCA Applied Knowledge · Business and Technology · The formal and informal business organisation

A manager has 14 direct subordinates and the organisation has only three levels from top to bottom. Which description best fits this structure, and what is its likely consequence?

This is a flat structure with a wide span of control. Few management levels and many subordinates per manager mean less close supervision and greater delegation, though communication up and down the hierarchy is usually quicker than in a tall structure.

  1. AFlat structure with a wide span of control; less close supervisionCorrect
  2. BTall structure with a narrow span of control; closer supervision
  3. CFlat structure with a narrow span of control; slower communication

Explanation

Few levels indicate a flat structure, and 14 subordinates per manager is a wide span of control. Wide spans mean managers cannot supervise closely, so more delegation is needed. A tall structure has many levels and narrow spans, and a flat structure cannot have a narrow span in this case.

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