Intro to Business › Section G · Organizational structure › Topic G.4

Authority and centralization

Once jobs are grouped into departments, managers must decide who reports to whom, how many people each manager oversees and where decisions are made. These choices about authority, span of control and centralisation shape how fast and how well an organisation works.

In this topic

  • Relationships inside the structure
  • Chain of command and unity of command
  • Authority, delegation and accountability
  • Span of control
  • What sets the right span
  • Worked example: span and layers
  • Centralisation
  • Decentralisation
  • Worked example: centralise or decentralise?
  • Common mistakes to avoid
  • Key takeaways

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