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

An organisation has few management layers, wide spans of control and decision-making pushed down to lower levels. How would this organisation be described?

The organisation is flat and decentralised. Few management layers with wide spans of control make the structure flat, and delegating decision-making to lower levels makes it decentralised. A tall structure would have many layers and narrow spans of control.

  1. ATall and centralised
  2. BFlat and decentralisedCorrect
  3. CTall and decentralised
  4. DFlat and centralised

Explanation

Few management layers and wide spans of control describe a flat structure. Pushing decisions down to lower levels means authority is decentralised. Tall structures have many layers and narrow spans.

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