Syllabus: International Baccalaureate - Individuals and Societies - Business management (Higher Level)
Module: Unit 2: Human Resource Management
Lesson: 2.2 Organizational structure
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Introduction
Organisational structure is a core topic in the International Baccalaureate (IB) Business Management Higher Level syllabus under Unit 2: Human Resource Management. Section 2.2 explores how organisational hierarchies and communication flows shape decision-making, efficiency, and culture within a business.
This article supports teachers, SLT, and careers leads in delivering this content through a commercially relevant and assessment-aligned lens. As schools continue to prioritise whole-school careers provision and Gatsby compliance, this unit offers rich opportunities to link curriculum learning directly to the workplace.
Key Concepts
According to the IB syllabus for HL Business Management, students are expected to understand:
Organisational charts: including levels of hierarchy, span of control, chain of command, and delegation.
Types of organisational structures: such as flat vs tall structures, centralised vs decentralised, and functional, matrix, or divisional models.
Formal vs informal communication and how structure affects this.
Project-based structures that encourage cross-functional collaboration.
Impacts of organisational design on innovation, communication, motivation, and decision-making.
Factors influencing structure choice: company size, objectives, culture, and external environment.
The changing nature of work: remote working, agile teams, and delayering.
These concepts directly support commercial awareness and critical thinking, equipping students to evaluate how structural choices impact a firm’s adaptability and efficiency.
Real-World Relevance
Organisational structure isn’t just theory—it defines how real businesses operate.
Meta (Facebook’s parent company) adopted a flatter structure to encourage quicker innovation, but struggled with coordination issues during rapid expansion.
Tesla uses a highly centralised structure with Elon Musk at the core of major decisions, raising questions about control versus empowerment.
Spotify applies a matrix model through “squads” and “tribes”, allowing autonomy while maintaining alignment—a useful example of agile and flexible structure in practice.
In UK contexts, many SMEs adopt flat structures, while public sector organisations often maintain formal, tall hierarchies. These differences allow students to apply theory to diverse organisational settings, including those relevant to their local context or potential careers.
How It’s Assessed
Assessment in IB Business Management HL focuses on a combination of data response, extended response (essay), and case study analysis. Students must demonstrate both knowledge and higher-order skills such as application, analysis, and evaluation. Expect questions such as:
Explain the impact of centralisation on communication.
Analyse the appropriateness of a matrix structure for a tech firm.
Evaluate the effectiveness of delayering in improving business efficiency.
Command words are crucial—students must recognise and respond to the cognitive demands:
Explain (AO2), Analyse (AO3), Evaluate (AO4).
Structured essays must include a balanced argument and conclusion supported by evidence.
Encourage students to use real examples, draw on multiple structural types, and consider the consequences of decisions within given business contexts.
Enterprise Skills Integration
Organisational structure is a direct lens into decision-making, communication, and problem-solving—core workplace competencies:
Decision-making: Choosing the right structure is a strategic decision with trade-offs.
Problem-solving: Students assess structural issues like poor communication or coordination.
Team collaboration: Matrix and project structures require negotiation and shared responsibility.
Commercial awareness: Understanding how structure aligns with strategy and markets.
Enterprise Skills tools (e.g. simulations where students run a company or restructure teams) are effective here. They enable students to role-play as managers, adjusting structures to improve performance, aligning perfectly with active learning findings that show 73% improved comprehension over traditional methods.
Careers Links
This topic is ideal for linking curriculum to careers, supporting Gatsby Benchmarks 4, 5, and 6:
Benchmark 4: Discuss how communication and hierarchy work in real roles (e.g. HR officer, team leader, operations manager).
Benchmark 5: Use embedded employer case studies or video interviews from tools like Skills Hub Futures to explore how different sectors structure their teams.
Benchmark 6: Simulate workplace experiences by giving students a challenge to propose structural changes in a fictional or real business.
Relevant roles and pathways include:
HR management
Operations and logistics
Project and programme management
Business analysis and consultancy
Entrepreneurship (especially when scaling teams)
These careers require not just understanding structure, but knowing how to adapt it to fast-changing markets.
Teaching Notes
Tips:
Visualise it: Start with org charts. Ask students to create structures for familiar organisations (e.g. their school).
Role-play: Assign roles in a fictional company and simulate a restructuring meeting.
Case study focus: Use businesses with known structures like McDonald’s (franchise model with centralised control) or John Lewis (employee-owned with flat elements).
Connect to culture: Explore how structure affects employee motivation and innovation.
Common Pitfalls:
Over-simplifying tall vs flat as “bad vs good”.
Confusing decentralisation with informal decision-making.
Ignoring external influences on structural change.
Extension Ideas:
Explore organisational culture (e.g. Handy’s model) alongside structure.
Examine how technology (e.g. remote tools like Slack) is reshaping hierarchy.
Link to ethics: Does hierarchy suppress or support diverse voices?
