1 Analyse the possible impacts on hierarchy due to business growth. [6]

[Abbas17]

[KN] Increased Organizational Complexity
[AN] As a business grows, it adds new departments and teams, which requires more layers in the management structure to handle the increased workload, making the organization more complex.
[AN+] The extra layers in the hierarchy help the organization coordinate better and communicate effectively as it grows. This strategic adjustment ensures smooth navigation of challenges and keeps operations efficient amid growth.

[KN] Delegation of Authority
[AN] As a business grows, it needs to share responsibilities by giving authority to different levels. Middle managers help connect top executives with frontline workers.
[AN+] Delegating decision-making power empowers teams and individuals for specific tasks, crucial for activity in a larger, more complex structure.