A Level Business: Organisational structure and Business communication (Cambridge 9609) – Revision Notes

These are condensed notes for sections 7.1 Organisational structure and 7.2 Business communication of the Cambridge International AS & A Level Business 9609 syllabus for examination in 2026, 2027 and 2028. They are A Level content, assessed on Paper 3 and Paper 4. For full explanations and worked examples, read the study guide, then try the practice questions. Other topic 7 ideas are in the A Level HRM practice set and the AS foundations are in the Topic 2 revision notes. Course links: the Cambridge A Level Business hub, the checklist and the free diagnostics.

7.1.1 Objectives and structure

Attribute of a good structure	Recall
Flexibility	Can adapt to change in markets or technology
Meets business needs	Fits the objectives, for example low cost or innovation
Allows growth and development	Room for new products, sites and staff
Encourages intrapreneurship	Staff free to propose and run new ideas inside the firm

Purpose: to organise people so the business can reach its objectives.

7.1.2 Formal structure vocabulary

Term	One-line definition
Levels of hierarchy	Layers of management from top to bottom
Chain of command	Path orders follow downwards and reports follow upwards
Span of control	Number of subordinates reporting directly to a manager
Responsibility	Duty to complete a task
Authority	Power to decide and instruct
Delegation	Passing authority for a task down
Accountability	Having to answer for the result
Centralised	Key decisions made at the top
Decentralised	Decisions made lower down

7.1.2 Types of structure

Structure	Key advantage	Key disadvantage
Functional	Specialist expertise	Departments pursue own aims
Narrow (tall)	Close control; promotion steps	Slow, costly communication
Flat	Fast communication; lower cost	Overloaded managers
Matrix	Skills shared across projects	Two bosses, possible conflict

Grouping choices

• Product: separate ranges needing different skills and markets.
• Function: similar work, one main product, specialist efficiency.
• Geographical area: regions or countries with different customers, rules or languages.

Why structures change

• Growth: more staff and sites outgrow the old design.
• Delayering: removing management layers to cut cost and speed decisions.
• Also: new strategy, technology, mergers.

Method in steps: span and levels

1. Write the people on each level: 1, then the span, then span squared, and so on.
2. Add the levels until the total reaches the workforce.
3. Count the levels. A wider span means fewer levels.

Reminder: with a span of 4, the first four levels hold 1, 4, 16 and 64 people, a total of 85. With a top post whose span is 6, and six managers each with a span of 8, the three levels hold 1, 6 and 48 people, a total of 55.

Method in steps: delayering evaluation

1. Annual saving = salaries of removed posts less extra pay for staff given extra duties.
2. One-off cost = redundancy and retraining.
3. Payback = one-off cost divided by annual net saving.
4. Weigh the figures against wider spans, lost experience, morale and communication.

7.1.3 Delegation and accountability

• Authority can be delegated; ultimate accountability stays with the delegator.
• Accountability processes: reporting lines, targets and indicators, appraisal, reports, meetings, audits, rewards and sanctions.
• Positive impact: frees managers, develops and motivates staff, faster local decisions.
• Negative impact: errors, inconsistency, training cost, loss of control.

7.1.4 Control, authority and trust

Distinction	Recall
Span versus levels	For a given workforce, wider span means fewer levels
Authority versus responsibility	Power to decide versus duty to do
Control versus trust	Checking everything wastes delegation; checking nothing risks error

Resolve the conflict by clear targets and limits, training, gradual delegation and review of results.

7.1.5 Centralisation and decentralisation

	Centralised	Decentralised
Plus	Consistency, control, scale economies	Speed, local knowledge, motivation
Minus	Slow, overloaded top, ignores local needs	Inconsistency, duplication, weaker control

Typical judgement: it depends on how different local markets are, how skilled local managers are and the cost of a mistake.

7.1.6 Line and staff

• Line: directly produces or sells (operations, sales); has authority in the chain of command.
• Staff: supports and advises (human resources, finance, IT, legal).
• Conflicts: standard policy versus freedom to hit targets; advice from people without operational experience; competition for budgets; resentment of delays.

7.2.1 and 7.2.2 Purposes and methods

Essential when: giving instructions, sharing targets, motivating, consulting, coordinating, dealing with customers and suppliers, crises, and change.

Method	Strength	Weakness
Spoken	Immediate feedback	No record
Written	Permanent record	Slow, no instant feedback
Electronic	Fast, wide reach	Overload, impersonal
Visual	Quick for data	Can oversimplify

7.2.3 Channels

Pair	Meaning
One-way	Sender to receiver, no feedback
Two-way	Feedback and response
Vertical	Up and down the hierarchy
Horizontal	Between people at the same level

Problems: delay and distortion through many levels; no check of understanding in one-way messages; missing horizontal links; overload.

7.2.4 and 7.2.5 Barriers and management’s role

Barrier	Remedy
Jargon	Plain language
Wrong method	Match method to message
Overload	Prioritise and summarise
Distance	Scheduled video calls
Mistrust	Honest, regular updates
Many levels	Delayering, direct briefings

• Informal communication: speeds information and shows concerns, but spreads rumour.
• Efficiency link: fewer errors, quicker decisions, better coordination, higher motivation.
• Improvements: two-way channels, team briefings with checks on understanding, training, acting on feedback.

Must-know distinctions

• Delegation versus decentralisation: delegation passes a task and its authority to one subordinate; decentralisation spreads decision-making across the whole organisation as a policy.
• Authority versus responsibility: a team leader told to cut waste (responsibility) but not allowed to change suppliers (no authority) is set up to fail.
• Staff function versus line function: a payroll team advises and supports; a production manager has authority over the shop floor.
• Formal versus informal communication: a team briefing follows the chain of command; a chat at the coffee machine does not.
• One-way versus two-way: a memo is one-way; a team meeting with questions is two-way.

Using the command words

Cambridge lists command words including Define, Identify, Explain, Calculate, Analyse, Assess, Evaluate, Justify and Advise. Match your answer to the word.

Command word	What to write for this topic
Define	A precise meaning of a term such as span of control
Identify	Name the feature, barrier or method, with no explanation needed
Explain	A reason or relationship, linked to the case
Calculate	Working with the figures given, then the answer
Analyse	A developed chain of cause and effect, for example wider span to less supervision to errors
Assess, Evaluate, Justify	Both sides, applied to the case, ending in a reasoned judgement
Advise	A suggested course of action with reasons

Evaluation prompts

Use these to turn description into judgement.

• Size and growth: is the business small enough for one decision-maker, or large enough to need layers?
• Skills: do local managers have the skill to take the decisions delegated to them?
• Cost of mistakes: where errors are costly, tighter control may be justified.
• Time frame: delayering may cut costs quickly, while the effect on morale and communication may take longer to show.
• Context: the best structure or method depends on the business, the message and the people involved.

Quick self-test

1. Define span of control.
2. State what happens to the number of levels if the span is widened.
3. Give one disadvantage of a matrix structure.
4. Calculate the people in a hierarchy of four levels where every manager has a span of 3, including the top post.
5. Does a manager who delegates a task stay accountable for it?
6. Give one reason a business might use a geographical structure.
7. Name one conflict between line and staff functions.
8. Give one weakness of written communication.
9. Distinguish vertical from horizontal communication.
10. Give one benefit and one risk of informal communication.

Answers

1. The number of subordinates reporting directly to one manager.
2. The number of levels falls.
3. Staff answer to two managers, which can cause conflict or confusion.
4. 1 + 3 + 9 + 27 = 40 people.
5. Yes; authority is passed down but accountability stays with the delegator.
6. Customers, rules or languages differ by region, so local managers need to respond.
7. Staff specialists want standard policy; line managers want freedom to meet targets.
8. It is slow and gives no instant feedback.
9. Vertical runs up and down the hierarchy; horizontal runs between people at the same level.
10. Benefit: quick information. Risk: rumour spreading.

Where marks are usually lost

• Describing a type of structure without applying it to the business in the case.
• Treating accountability as something that transfers fully to the subordinate.
• Confusing authority with responsibility.
• Writing that flat structures are always best, with no judgement about context.
• Listing barriers to communication without any remedy.
• Giving advantages and disadvantages of a method but never choosing one for the situation.
• Calculating a delayering saving and not weighing it against non-financial effects.
• Ignoring the difference between formal and informal channels.

Frequently asked questions

Does a manager stay accountable after delegating a task? Yes. Authority for the task can be passed down, but ultimate accountability stays with the manager who delegated it.

What is the difference between delegation and decentralisation? Delegation passes a task and its authority to one subordinate. Decentralisation moves decision-making lower down the whole organisation.

What is the difference between line and staff functions? Line functions directly produce or sell, such as operations and sales, and have authority in the chain of command. Staff functions support and advise, such as human resources, finance, IT and legal.

What is a matrix structure? In a matrix structure, staff report to both a functional manager and a project or product manager. It shares skills across projects, but having two bosses can cause conflict or confusion.

Official syllabus

Cambridge International AS & A Level Business 9609 syllabus for examination in 2026, 2027 and 2028, published by Cambridge International: sections 7.1 and 7.2.