Syllabus: Pearson - A Level Business
Module: 1.4 Managing People
Lesson: 1.4.3 Organisational Design

Introduction

This article explores 1.4.3 Organisational design, a subtopic within Theme 1 of the Pearson Edexcel A Level Business syllabus. It’s part of the broader Managing People unit, which equips students to understand how structure and design impact business performance and employee behaviour.

Why does it matter? Because organisational structure shapes everything from decision-making to innovation. This topic builds critical foundations for analysing real businesses and underpins later content on strategic decision-making in Theme 3.

Built for classroom use, this guide aligns with official specifications and supports you with planning, engagement ideas, and assessment insights.

Key Concepts

According to the Pearson Edexcel A Level Business specification, students are expected to understand the following:

• Types of organisational structures, including:

  • Tall and flat structures

  • Centralised vs decentralised decision-making

  • Hierarchical and matrix structures

• Impacts of different structures on communication, employee motivation, decision speed, and control.

• Organisational charts, spans of control, chain of command and delayering.

• When and why businesses might change their structure, particularly in response to growth, strategy, or market shifts.

These concepts are explicitly stated in Pearson’s published materials and are fundamental for Theme 1 assessments.

Real-World Relevance

Structure isn’t just theory—it defines how modern businesses operate.

• Tesco’s shift to a flatter structure aimed to empower store managers and improve responsiveness at the local level.

• Google’s matrix structure blends functions and projects, encouraging innovation through cross-functional collaboration.

• John Lewis Partnership uses decentralisation in its co-ownership model, giving employees a voice in how the business is run.

These examples provide concrete context to abstract ideas and can be easily adapted into case study tasks or source-based discussions.

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How It’s Assessed

Assessment in Theme 1 typically includes a blend of:

• Short-answer and calculation questions (e.g., interpreting organisational charts)

• Data-response questions linked to a business scenario

• Extended open-response questions requiring evaluation and judgement, often signposted with command words like:

  • Analyse: logical chains of reasoning

  • Evaluate: balanced arguments and supported conclusions

  • Assess: judgement based on context

Expect questions such as:

“Assess the impact on employee motivation of changing from a tall to a flat organisational structure.”

Knowing the mark scheme is key—answers are rewarded for application, context, and judgement, not just definitions.

Enterprise Skills Integration

Organisational design offers rich opportunities for students to:

• Problem-solve how structural changes affect communication or morale.

• Make decisions about appropriate structures for different types of businesses (e.g. start-ups vs multinationals).

• Debate trade-offs, such as control vs flexibility or centralisation vs autonomy.

• Apply knowledge to simulations or role-play, such as designing a structure for a fictional business.

Enterprise Skills’ Business Simulations embed these principles by asking students to make structural and staffing decisions under real-time pressure.

Careers Links

This topic aligns directly with several Gatsby Benchmarks—particularly:

• Benchmark 4: Linking curriculum to careers

• Benchmark 5: Encounters with employers and employees

Relevant roles include:

• HR Manager

• Operations Manager

• Business Analyst

• Organisational Development Consultant

By understanding structure, students gain insight into how businesses operate internally—knowledge that’s critical for anyone entering corporate, non-profit, or public sectors.

Teaching Notes

Here’s what works well in classrooms:

What to watch for:

• Students often confuse centralised/decentralised with tall/flat—clear diagrams help.

• Matrix structures can be conceptually tricky. A worked example from a tech firm or marketing agency can clarify.

Time-saving activities:

• Use our Skills Hub plug-and-play lesson for this topic—it includes editable charts, challenge tasks, and assessment practice.

• Integrate a short simulation where students must restructure a business following a growth phase.

Stretch and challenge:

• Ask students to evaluate the suitability of structures for different business types (e.g. a fast-food franchise vs a software start-up).

• Introduce conflicting stakeholder perspectives—what’s best for head office may not work for front-line staff.

Misconceptions to address:

• Flat structures aren’t always ‘better’—they can hinder control and clarity in large firms.

• Centralisation doesn’t mean “autocratic” leadership—context is key.