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Organisational structure

Organisational structure allocates roles, responsibilities, authority and reporting relationships so that work can be coordinated. It includes how activities are grouped and how decisions and information move across the organisation. A chart shows formal relationships but may not reveal informal influence or how collaboration works in practice. The choice should reflect strategy, activities, coordination needs, size and other relevant circumstances rather than copying a fashionable chart.

Worked example

A retailer groups stores by region and gives regional managers authority over local staffing while centralising purchasing. These choices define aspects of its structure.

Common mistake

Treating an organisation chart as a complete account of how work and influence operate, or assuming one structure is best in every situation.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA BT Direct September 2026–June 2027
ACCA SBL Direct September 2026–June 2027
FIA FBT Direct September 2026–June 2027