Organisational structures common mistakes

Common mistakes

• Confusing delegation with delegation of authority

  Assuming that when a task is delegated, the manager loses all responsibility for the outcome.

  Fix itDelegation transfers the task but the manager remains ultimately accountable for the result.

• Assuming all businesses use the same structure

  Believing that a small online service must have a complex hierarchical structure.

  Fix itSmall businesses often use flat or simple structures, but still define clear roles to avoid confusion.

• Assuming flat structure always leads to faster decisions

  Students often think that flat structures automatically speed up decision making in all contexts.

  Fix itIn reality, flat structures can become unwieldy if the team is large, leading to confusion and slower decisions.

• Assuming hierarchical structure always slows communication

  Believing that a hierarchical structure inevitably leads to slow, top‑down communication.

  Fix itWhile it can create bottlenecks, a hierarchical structure also provides clear decision paths that can speed up communication when used effectively.