Organisational Structures and Recruitment
Organisational Structures and Recruitment
Organisational structure is how a business is arranged — who reports to whom, how decisions flow and how work is divided. Recruitment is the process of finding and hiring the right people.
Organisational Structure
Key Terms
| Term | Definition |
|---|---|
| Hierarchy | The levels of authority in a business, from top management to shop floor |
| Span of control | The number of subordinates a manager is directly responsible for |
| Chain of command | The line of authority from the top of the hierarchy to the bottom |
| Delegation | Passing authority down the hierarchy — giving subordinates responsibility for tasks |
| Centralised | Decisions are made by senior management at the top |
| Decentralised | Decision-making is spread across the organisation — local managers have authority |
Tall vs Flat Structures
| Tall Structure | Flat Structure |
|---|---|
| Many layers of hierarchy | Few layers of hierarchy |
| Narrow span of control | Wide span of control |
| Clear chain of command and promotion path | Faster communication — fewer layers to pass through |
| More opportunities for supervision and control | Employees have more responsibility and autonomy |
| Slower communication and decision-making | Managers may be overwhelmed (too many direct reports) |
| More expensive (more managers needed) | Fewer promotion opportunities — may reduce motivation |
Centralised vs Decentralised
| Centralised | Decentralised |
|---|---|
| Senior managers make key decisions | Local managers make decisions for their area |
| Consistent decisions across the business | Faster decisions — no need to wait for head office |
| Senior managers have the big picture | Local managers understand local needs better |
| Can be slow — bottleneck at the top | Less consistency — different areas may do things differently |
| Suits small businesses and those needing tight control | Suits large, geographically spread businesses |
Recruitment
Recruitment is the process of attracting, selecting and appointing suitable candidates.
The Recruitment Process
1. Identify the vacancy — a new role or a replacement
2. Write a job description — duties, responsibilities, working hours, location
3. Write a person specification — qualifications, skills, experience and qualities required (essential vs desirable)
4. Advertise the job — internally (within the business) or externally (job boards, agencies, social media)
5. Receive and shortlist applications — review CVs and application forms
6. Interview and select — interviews, tests, presentations, group exercises
7. Appoint and induct — offer the job, complete paperwork, provide training and orientation
Internal vs External Recruitment
| Internal | External |
|---|---|
| Promoting or transferring existing staff | Hiring someone new from outside |
| Cheaper and faster — no advertising costs | Brings in new ideas, skills and experience |
| Candidate is already known — lower risk | Wider pool of candidates — more choice |
| Motivates staff — shows promotion is possible | Avoids resentment from internal candidates who are passed over |
| Creates another vacancy that needs filling | More expensive (advertising, agency fees) and time-consuming |
Selection Methods
- Interviews — face-to-face, panel or video; assess communication and personality
- Skills tests — practical tasks to assess ability (e.g. typing speed, coding test)
- Psychometric tests — assess personality traits, aptitude and cognitive ability
- Group exercises — observe teamwork, leadership and problem-solving
- References — checking with previous employers
Exam Tips
- Draw a simple hierarchy diagram if it helps explain your answer
- Know the difference between span of control and chain of command
- For recruitment, compare internal vs external — the best choice depends on the situation
- For evaluation: Is a flat structure always better? Consider the size and type of business
- Link structure to communication, motivation and efficiency