Cambridge Syllabus Notes

7.1 Organisational Structure – Delegation and Accountability

Learning objective

Explain how an organisation’s structure is chosen to meet its objectives and evaluate the way delegation, accountability, control, authority, trust, centralisation, decentralisation, and line‑vs‑staff relationships operate within the main types of structure.

1. Relationship between objectives and structure

Business objectives exist at three levels – mission (overall purpose), strategic (medium‑term goals) and operational (day‑to‑day targets). The Cambridge syllabus requires us to describe the relationship between business objectives and organisational structure. The structure must provide a framework that enables the organisation to translate its mission into strategic plans and then into operational actions. In practice:

When the mission stresses cost leadership and efficiency, a functional structure aligns specialised departments to achieve economies of scale.
When the mission emphasises market penetration or product diversification, a divisional (product or geographic) structure gives each market its own profit‑centre, linking strategic goals directly to operational units.
When the mission calls for innovation, flexibility and rapid response, a matrix or network/virtual structure combines functional expertise with project‑oriented teams, allowing strategic ideas to be implemented quickly at the operational level.
When the mission requires fast decision‑making, a flatter (horizontal) structure reduces hierarchical layers, shortening the chain of command between strategy and operation.

2. Formal elements of structure

Element	Definition (syllabus wording)	Impact on delegation & accountability
Levels of hierarchy	The number of managerial layers between the top and the front line.	More levels → longer delegation chain; fewer levels → quicker accountability feedback.
Chain of command	The line of authority linking each employee to the top of the organisation.	Clarifies who gives orders and who is answerable for results.
Span of control	The number of sub‑ordinates reporting directly to a manager.	Wide span → broader delegation, higher individual accountability; narrow span → tighter control.
Responsibility	The duty to perform a task or achieve a result.	Assigned when a task is delegated.
Authority	The formal right to make decisions and command resources.	Granted together with responsibility; defines the limits of delegation.
Delegation	The transfer of authority and responsibility from a manager to a subordinate.	Creates a clear line of accountability for the delegated activity.
Accountability	The obligation to answer for the use of resources and the achievement of objectives; the manager retains overall accountability.	Manager remains answerable for overall results; employee is answerable for the specific portion delegated.
Centralisation	The concentration of decision‑making authority at the top of the hierarchy.	Limits delegation; increases managerial accountability.
Decentralisation	The dispersion of decision‑making authority to lower levels.	Encourages extensive delegation and local accountability.
Line vs. staff	Line positions are directly involved in producing the organisation’s primary output; staff positions provide specialist advice and support.	Line managers usually delegate operational tasks; staff experts delegate advice and analysis.
Control, authority & trust	Control = formal mechanisms (rules, procedures) used to ensure objectives are met; authority = formal right to act; trust = confidence that employees will act responsibly without detailed supervision.	High control → tighter monitoring of accountability; high trust → greater delegation autonomy.

3. Types of organisational structure

Structure	Key features	Typical delegation pattern	Control / authority / trust / centralisation	Advantages	Disadvantages
Functional	Departments organised by specialist activity (e.g., Marketing, Finance).	Vertical delegation from functional head → line manager → staff.	High centralisation of decision‑making; tight departmental control; authority rests with functional heads; moderate trust in specialist expertise.	Specialist expertise; economies of scale.	Slow response to market changes; silo thinking.
Hierarchical (tall)	Many management layers; narrow span of control.	Delegation passes through several supervisory levels.	High control through formal procedures; authority concentrated at upper levels; low trust in lower‑level autonomy.	Clear authority; close supervision.	High administrative cost; delayed decision‑making.
Flat (horizontal)	Few layers; wide span of control.	Broad delegation; employees often self‑manage.	Low formal control; authority distributed widely; high trust in staff competence.	Quick communication; empowered staff.	Potential overload for managers; risk of role ambiguity.
Divisional – Product	Separate profit‑centres for each product line.	Delegation within each division; division manager has autonomy.	Moderate centralisation (strategic direction remains at HQ); strong control within divisions; authority devolved to product heads; trust in product‑team decisions.	Focus on product markets; responsive to product‑specific changes.	Duplication of functions; higher overhead.
Divisional – Geographic	Separate units for each region or country.	Delegation to regional managers who control local resources.	Decentralised decision‑making; local control mechanisms; authority rests with regional heads; high trust in local knowledge.	Adaptation to local markets; clear regional accountability.	Potential inconsistency across regions.
Matrix	Dual reporting – employees report to both a functional manager and a project/product manager.	Dual delegation; authority shared between two managers.	Mixed control (formal functional procedures + project‑based flexibility); authority split; high trust required to manage conflict.	Flexibility; efficient use of specialist skills.	Complex accountability; risk of conflict.
Network / Virtual	Core firm linked to external partners through contracts or technology.	Delegation of whole processes to external organisations.	Low internal control; authority exercised by partners; high trust in contractual relationships; highly decentralised.	High flexibility; low fixed costs.	Reliance on partners; control issues.

4. Delegation and accountability (syllabus focus)

Definitions (exact syllabus wording)

Authority: The formal right to give orders, make decisions and allocate resources.
Responsibility: The duty to complete a task or achieve a result.
Delegation: The transfer of authority and responsibility from a manager to a subordinate.
Accountability: The obligation to answer for the use of resources and the achievement of objectives; the manager retains overall accountability.

Delegation process – step‑by‑step (with mini‑example)

Step	Manager’s action	Resulting accountability	Illustrative example
1	Define the task, its objectives and the performance standards.	Manager remains accountable for setting the goal.	Senior Marketing Director sets a target: “Launch a new snack product in Q3 and achieve 5 % market share.”
2	Select the employee (or team) with the appropriate skills.	Employee becomes accountable for execution.	The Director appoints the Brand‑Manager who has experience with snack launches.
3	Communicate the authority, resources and limits of decision‑making.	Clear authority line; employee knows the scope of accountability.	The Brand‑Manager is given a budget of £250 k, authority to choose packaging suppliers, but must seek approval for price changes.
4	Agree on measurable performance indicators and reporting intervals (SMART).	Both parties can monitor progress and hold each other accountable.	KPIs: prototype ready by week 4, test‑market results by week 8, weekly progress report to Director.
5	Provide ongoing support, remove obstacles and give guidance where required.	Manager’s accountability for enabling success.	Director arranges meetings with the legal team to fast‑track label approvals.
6	Review the outcome, give feedback and record learning.	Employee accountable for results; manager accountable for overall performance of the product launch.	After launch, Director evaluates sales against the 5 % target and discusses lessons learned with the Brand‑Manager.

Why delegation must be linked to accountability

Delegation without clear accountability creates “responsibility‑free” zones – tasks may be ignored or duplicated.
Accountability without delegation overloads senior managers and prevents staff development.
Effective delegation therefore requires:
- Explicit authority limits,
- Agreed performance criteria,
- Regular reporting and feedback.

5. Centralisation vs. decentralisation

Aspect	Centralisation	Decentralisation
Decision‑making location	Top‑level managers.	Lower‑level managers or front‑line staff.
Typical authority level	High – few people hold most authority.	Broad – authority spread throughout the organisation.
Impact on delegation	Limited – managers retain most tasks.	Extensive – many tasks are delegated.
Effect on accountability	Clear, single line of accountability.	Multiple, often localised accountability lines.
Best suited to	Stable environments, cost‑focus, small‑to‑medium firms.	Dynamic markets, large multinational firms, product/division diversity.

6. Line vs. staff relationships

Line positions – directly involved in producing the organisation’s primary output (e.g., production supervisor, sales manager). They usually have the authority to make operational decisions and are heavily involved in delegating routine tasks.
Staff positions – provide specialist advice, support and services (e.g., HR, legal, finance). They typically do not have direct authority over line activities but may delegate analytical or advisory work to junior staff.
Effective coordination requires:
- Clear definition of who holds decision‑making authority for each activity.
- Formal reporting lines (line reports to staff for expertise; staff reports to line for implementation).
- Mutual accountability – line managers are accountable for results; staff are accountable for the quality of advice.

7. Control, authority and trust

Control – formal mechanisms such as policies, procedures, budgets and performance reviews used to ensure that activities are carried out as intended.
Authority – the formal right granted by the structure to make decisions and allocate resources.
Trust – the informal belief that employees will act responsibly without constant supervision.
Relationship:
- High control → tight monitoring, less reliance on trust, limited delegation.
- High trust → broader delegation, reduced need for detailed control mechanisms.
- Balanced organisations use a mix: clear authority (formal) plus a culture of trust (informal) to achieve both efficiency and flexibility.

8. Ensuring effective accountability

Set SMART objectives for every delegated task.
Document authority levels in job descriptions, delegation sheets or organisational charts.
Use performance metrics (KPIs, targets) and agreed reporting cycles.
Provide training on decision‑making, ethical responsibility and reporting procedures.
Foster an open culture where successes are celebrated and failures are analysed constructively.

9. Common pitfalls and how to avoid them

Pitfall	Consequence	Preventive action
Over‑delegation	Loss of strategic oversight; blurred responsibility.	Retain authority for core strategic decisions; delegate only operational tasks.
Under‑delegation	Bottlenecks, demotivated staff.	Identify routine activities that can be safely delegated; set clear authority limits.
Unclear authority limits	Delays, duplicated effort, conflict.	Use delegation sheets that state the exact scope of decision‑making power.
Lack of feedback or review	Accountability becomes vague; performance slips unnoticed.	Schedule regular progress meetings and post‑project reviews.
Confusing line‑vs‑staff responsibilities	Misallocation of tasks, tension between departments.	Map responsibilities on a RACI matrix (Responsible, Accountable, Consulted, Informed).

10. Suggested diagram (for revision)

Delegation & accountability flowchart – senior manager → line manager → employee; each arrow labelled “authority + responsibility”, each box contains an “accountability” note; feedback arrows return from employee → line manager → senior manager.

11. Summary

Organisational structure is chosen to support the mission, strategic and operational objectives of a business. Formal elements – hierarchy, chain of command, span of control, authority, responsibility, delegation and accountability – interact to determine how work is allocated and monitored. Delegation transfers authority and responsibility while the manager retains overall accountability. The degree of delegation is shaped by the level of centralisation, the type of structure (functional, divisional, matrix, flat, etc.) and the line‑vs‑staff relationship. Effective control blends formal mechanisms with a culture of trust, ensuring that accountability is clear, measurable and consistently reviewed.

the relationship between delegation and accountability