Syllabus: International Baccalaureate - Individuals and societies - Business management (Standard Level)
Module: Unit 2: Human resource management
Lesson: 2.2 Organizational Structure

Introduction

Organisational structure is a core component of the IB Business Management Standard Level curriculum, specifically under Unit 2: Human Resource Management. This topic provides students with foundational understanding of how businesses are structured to operate efficiently and meet strategic objectives. It explores both traditional hierarchies and emerging structural models, helping learners grasp how authority, communication and responsibility flow within an organisation.

This concept is vital not just academically, but as a building block for career readiness. Understanding how real-world organisations are structured enhances students’ workplace confidence and commercial literacy, both of which are essential in meeting Gatsby Benchmarks 4, 5 and 6.

Key Concepts

According to the IB syllabus for Business Management SL, students are expected to understand the following within this sub-topic:

• Definition and purpose of organisational structure: Why businesses structure operations and the importance of clear reporting lines.

• Types of organisational structures:

  • Hierarchical (tall and flat)

  • Functional, product-based, geographic, matrix

• Key terms:

  • Chain of command

  • Span of control

  • Delegation

  • Accountability

  • Centralisation vs decentralisation

  • Delayering

• Implications:

  • Impact of different structures on communication, efficiency and decision-making.

  • Suitability of different structures for businesses of varying sizes and industries.

These concepts support students in analysing how structure affects the strategic and operational effectiveness of a business.

Real-World Relevance

Organisational structure is not a theoretical exercise. It directly shapes how companies function. For example:

• Spotify uses a matrix structure with “squads” and “chapters” to encourage agility and innovation—ideal for fast-paced tech industries.

• Tesco, by contrast, operates a more functional and regional hierarchy, reflecting its size, product range and need for local responsiveness.

• During the COVID-19 pandemic, many businesses adopted flatter structures and increased delegation to enable faster decision-making in remote work settings.

Students can analyse how structure affects adaptability, such as how Amazon’s divisional approach supports global scale while allowing for innovation in areas like logistics and AI.

How It’s Assessed

In IB exams, this sub-topic appears in Paper 1 and Paper 2, with command terms including:

• Explain – e.g., “Explain the advantages of a matrix organisational structure.”

• Analyse – e.g., “Analyse how organisational structure may affect communication and control in a multinational company.”

• Discuss/Evaluate – e.g., “Evaluate whether a flat structure is appropriate for a rapidly growing start-up.”

Students must demonstrate understanding of theory and apply it to real or case study-based business scenarios. Strong responses use appropriate terminology, consider context, and weigh advantages/disadvantages clearly.

Enterprise Skills Integration

Understanding organisational structure builds students’ decision-making and problem-solving abilities. By exploring how roles and authority affect business performance, students develop:

• Analytical thinking – evaluating structure’s impact on outcomes.

• Strategic decision-making – considering structural changes to meet business goals.

• Teamworking insight – understanding team dynamics within various structures.

Enterprise Skills simulations reinforce this by letting students experience structural decisions in action, deepening comprehension and engagement.

Careers Links

Organisational structure links directly to workplace readiness and multiple career paths. For example:

• HR Officers must design and manage organisational charts.

• Project Managers need to navigate matrix environments.

• Operations Managers rely on understanding spans of control and delegation.

This topic supports Gatsby Benchmark 4 by linking curriculum to career contexts and Benchmark 5 through activities like employer case studies. Tools such as Skills Hub Futures embed these competencies into zero-prep sessions with real-world applications.

Teaching Notes

Tips for Delivery

• Use organisational charts from real companies (e.g., Google, NHS, Unilever) to help students visualise structures.

• Simulate a restructuring scenario—e.g., ask students to restructure a business expanding internationally.

• Encourage debates: “Flat vs tall structures—what works better in education or retail?”

Common Pitfalls

• Confusing delegation with decentralisation.

• Over-simplifying structures (e.g., assuming matrix = better).

• Not linking structure to strategy or business objectives.

Extension Activities

• Assign students a business sector (e.g., fashion, healthcare, logistics) and have them design a suitable structure.

• Run a Skills Hub simulation focusing on organisational decisions and hierarchy challenges.