Organisational structure

Introduction to Organisational Structure

  • Organisational structure defines how tasks are allocated, coordinated, and supervised within an organisation.
  • It’s a depiction of the hierarchy within an organisation, illustrating relationships between various roles and departments.
  • The structure of an organisation is often a reflection of its objectives and strategy.

Different Types of Structure

  • Hierarchical structure refers to an organisation where every entity, barring the top, is subordinate to a single other entity.
  • Flat structure is one with few or no levels of intervening management between staff and managers, promoting more self-management.
  • Matrix structure is where employees have dual reporting relationships - generally to both a functional manager and a product manager.

Factors Influencing the Choice of Structure

  • Size of organisation: Larger organisations tend to have more complex structures, like divisional or matrix structures.
  • Business objectives: Different structures may be more appropriate depending on the business’s goals. For example, a business that prizes innovation might adopt a less hierarchical structure.
  • Business environment: If the external environment is fast-changing, businesses might need a more flexible structure.

Impact of Organisational Structure

  • The organisational structure can impact the efficiency of operations and the flexibility of the business.
  • It’s crucial in determining how information flows through the organisation and how decisions are made.
  • Can influence staff motivation and job satisfaction. Flat structures, for example, can promote a sense of equality and team spirit.

Changing Organisational Structure

  • Over time, a business may need to change its structure to respond to growth, technological change or a shift in business strategy.
  • Reorganisation can be a major challenge, but it is usually necessary for a business evolving its operations or facing new competitive pressures.

Understanding organisational structure allows for a deeper comprehension of how a business functions, how decisions are made, and how the workforce interacts. It’s a fundamental part of developing a business.