Syllabus: SQA - Higher Course Spec Business Management
Module: Understanding Business
Lesson: Structures

Introduction

This lesson focuses on the “Understanding business – Structures” element of the SQA Higher Business Management course. It’s a core part of the “Understanding Business” unit and helps students grasp how different organisational structures influence decision-making, growth, and performance. This knowledge underpins a broader understanding of how businesses operate and aligns directly with the SQA specification for Higher Business Management.

Why it matters? Because structure affects everything—from how a business runs day-to-day to how it grows or adapts in a crisis. Helping students make sense of this now sets them up for better exam responses and stronger business awareness in future pathways.

Key Concepts

The SQA Higher Business Management course outlines the following essential content for this topic:

• Types of organisational structures

  • Tall, flat, matrix, entrepreneurial, and centralised vs decentralised models.

  • Each structure’s characteristics, pros and cons.

• Impact of structure on communication and decision-making

  • How hierarchy, span of control, and chain of command affect workflow.

  • Challenges such as communication breakdowns or decision delays.

• Internal and external factors influencing structure

  • Growth, technology, and staffing levels as internal drivers.

  • Legislation, competition, and customer expectations as external pressures.

• Effect of structure on employee roles and responsibilities

  • How structure shapes delegation, responsibility, and team dynamics.

• Adaptability of structure to change

  • Why flexibility is crucial, especially in response to crises or market shifts.

Real-World Relevance

Let’s take the example of Spotify. Originally a flat structure, it embraced a “squad” model (similar to a matrix structure) to combine autonomy with collaboration. This shift helped scale innovation while managing global growth. Meanwhile, businesses like Tesco have had to evolve from tall to flatter structures in parts of their operation to speed up decision-making and cut costs.

These examples are perfect to spark discussion: Why do big companies restructure? What impact does it have on frontline workers? This kind of questioning brings structure theory to life.

How It’s Assessed

Assessment at Higher level involves both the question paper and assignment. Here’s what to focus on:

• Exam questions will ask learners to:

  • Describe or compare structures.

  • Analyse advantages/disadvantages in specific scenarios.

  • Apply knowledge to case studies or unseen business contexts.

• Command words to emphasise in teaching:

  • Explain: Give reasons with depth.

  • Analyse: Break down effects or consequences.

  • Justify: Back up a recommendation or choice.

• Marking expectations favour structured answers with clear linkage between structure type and business impact. Past papers often include real-world style prompts that ask students to recommend an appropriate structure for a given scenario.

Enterprise Skills Integration

This topic provides a natural platform for embedding key enterprise and employability skills:

• Problem-solving: Evaluating which structure fits a business scenario.

• Decision-making: Making recommendations based on given constraints.

• Teamwork and communication: Exploring how structure affects collaboration.

• Initiative: Encouraging students to redesign structures to fix inefficiencies.

Use classroom simulations—like roleplaying a team under a tall vs matrix structure—to let students experience these effects directly. It’s not just theoretical, it’s experiential learning.

Careers Links

Understanding business structures links directly to Gatsby Benchmarks 4, 5 and 6:

• Benchmark 4 (Curriculum Links to Careers): Show how roles differ in a hierarchical vs flat organisation.

• Benchmark 5 (Employer Encounters): Invite local managers or HR staff to discuss how their organisational structure shapes job roles.

• Benchmark 6 (Workplace Experience): Encourage students on placements to reflect on structure in practice.

Relevant roles include:

• Operations Manager

• HR Coordinator

• Business Analyst

• Entrepreneur

Helping students connect structural theory to how teams work in real organisations supports both employability and engagement.

Teaching Notes

Tips:

• Use businesses students know (like Greggs, Amazon or local SMEs) to anchor abstract ideas.

• Have students map out their school’s structure—then critique it.

• Use case study data to encourage exam-style application.

Common pitfalls:

• Overfocusing on definitions without applying them.

• Confusing “flat” with “unstructured”.

• Forgetting that structure can evolve with time and size.

Extension activities:

• Compare the structure of two very different organisations (e.g., a tech start-up vs NHS trust).

• Run a “structure redesign” task using a failing fictional company as the base.

Helpful resources:

• SQA past papers and specimen questions.

• YouTube clips showing businesses behind the scenes.

• Free simulation tools or role-play prompts that explore decision-making flows.