Syllabus: Cambridge - IGCSE Business Studies
Module: 2.1 Motivating Employees
Lesson: 2.2.1 Draw Interpret and Understand Simple Organisational Charts

Introduction

This topic is part of the Cambridge IGCSE Business Studies syllabus, specifically section 2.2.1. It sits within the broader theme of “Organisation and Management” and introduces learners to the fundamentals of how businesses are structured. Understanding and interpreting organisational charts builds a foundational awareness of workplace dynamics and communication flows—essential for both exam success and career readiness.

For teachers, this is an opportunity to connect classroom learning with real-world organisational structures, aligning with Gatsby Benchmark 4 by linking curriculum to careers, while also contributing to students’ commercial literacy.

Key Concepts

According to the Cambridge IGCSE syllabus, students are expected to be able to:

• Draw simple organisational charts showing roles and reporting lines within a business

• Interpret charts to identify span of control, levels of hierarchy, chain of command, and accountability

• Understand key terminology such as delegation, centralisation, decentralisation, and line/staff roles

• Apply understanding to different business sizes and sectors, considering formal versus informal structures

Key terms to reinforce:

• Span of control – Number of subordinates reporting directly to a manager

• Chain of command – The line through which authority and instructions flow

• Delegation – Assigning responsibility and authority to others

• Hierarchy – Levels of authority in an organisation

• Accountability – Responsibility for outcomes

Real-World Relevance

Organisational charts are used in every major workplace—from small businesses to global corporations. For example:

• Amazon uses complex matrix structures to coordinate global teams across products and functions.

• Local SMEs often use flat organisational charts to keep decision-making agile and communication open.

• During the COVID-19 pandemic, many organisations restructured to allow for remote and hybrid work, showcasing the real-time importance of adaptable organisational design.

A short case: A regional charity reorganised its staff after a funding review, simplifying its chart to improve communication between project workers and fundraising leads. Students can analyse this shift to understand the impact of structure on efficiency and morale.

How It’s Assessed

Assessment in this unit typically includes:

• Short-answer questions asking students to define key terms (e.g. “What is span of control?”)

• Diagram interpretation tasks where students analyse a provided organisational chart to explain levels of hierarchy or identify communication lines

• Applied questions where students suggest and justify a structure for a given business scenario

Common command words include:

• Identify, Define, Explain, Analyse, Justify.

Students may be asked to draw an organisational chart for a small retail business and explain their reasoning. Higher-mark questions will expect justification and contextual understanding.

Enterprise Skills Integration

This topic directly supports development in:

• Workplace Readiness: Students gain practical insight into how real organisations operate, helping them feel more prepared for professional environments.

• Commercial Awareness: Understanding reporting lines and management flow builds foundational literacy in how decisions are made and executed within businesses.

• Decision-Making & Problem-Solving: Analysing an ineffective structure and suggesting improvements develops critical thinking and systems analysis—a skill frequently highlighted in employer feedback.

Enterprise Skills simulations reinforce these through real-time decision-making in organisational roles.

Careers Links

This content aligns clearly with the Gatsby Benchmarks:

• Benchmark 4 – Linking curriculum to careers: Students explore roles such as team leader, supervisor, operations manager.

• Benchmark 5 – Encounters with employers: Use real company examples or invite guests to explain their place in a company chart.

• Benchmark 6 – Experiences of workplaces: Role-play organisational meetings or simulate restructuring decisions.

Relevant career paths:

• Operations and logistics

• HR and recruitment

• Middle and senior management

• Public sector administration

Students gain insight into workplace expectations and role clarity—critical to progression in any career.

Teaching Notes

Tips for Delivery:

• Use student-led roleplay: Assign roles from an organisational chart and simulate decision-making.

• Visual learning: Encourage students to build charts from a business case or real local company.

• Active recall: Ask students to draw an org chart from memory and explain the roles.

• Use enterprise tools: Incorporate Skills Hub resources that allow chart creation, decision tracking, and role simulations.

Common Pitfalls:

• Confusing span of control with chain of command

• Assuming flat structures mean no managers

• Over-simplifying delegation without understanding accountability

Extension Activities:

• Compare hierarchical vs flat structures using real businesses

• Design an organisational chart for a business they create themselves

• Reflect on which structure would work best for a growing startup vs a school