IBDP Business Management Human Resources Chapter 2 Notes

organizational structure


These notes have specially been curated by expert teachers to simplify and enlighten concepts given in IB Business Management HL. The notes are comprehensive in nature and are sufficient to study the chapter in depth, One need not look for other resources beyond the notes provided on our website which can be accessed for free.

Business management IBDP is a part of group 3 Individuals and the Society of the IB curriculum. The IBDP Business Management course has been devised for imparting knowledge and understanding of different theories of Business Management and application of various tools and methods. It enables the students to analyze and evaluate business activities at all levels- local, national, or international, It also helps in developing holistic understanding of the business environment today which is complex and fast changing.

The subject covers important characteristic of business organization and business functions of human resource management, finance and accounting, marketing, and operations management. The purpose of the course is to help students develop skills that enable them to think critically and make the right decisions after carefully evaluating and analyzing the issue at hand. It also aims at developing the understanding of the importance of innovation and exploring business from different cultural perspectives.

Organizational structure is defined as a formal framework within a business that identifies the roles and responsibilities of the people in the organization, Along with this the system of flow of information and the way in which authority is passed down the organization through the chain of command as well. We examine the factors that influence organizational structure and their importance. Various job roles within the organization have been defined along the hierarchy.

Next, we understand the concept of Delegation in which authority is passed down the structure of the organizations from the superiors to the subordinates. Hierarchy in an organization is based on the system of ranking there are different levels of hierarchy in an organization depending on the skills, responsibilities, and authority of the people. It defines the lines of communication, but it might cause demotivation amongst the employees along with inflexibility. We analyze the advantages and disadvantages of delegation and delayering to reduce the number of levels of hierarchy in an organization and flatten the structure. We discuss important concepts of centralization and decentralization and project-based organization in which hierarchy is based on the projects of different department.