Internal Organisational Structures

Section 1: Understanding Organisational Structures

An organisational structure defines how activities within an organisation are arranged and coordinated.
It establishes the chain of command or hierarchy within the organisation.
It sets out the lines of authority, responsibility, and communication.

Section 2: Types of Organisational Structure

A hierarchical structure has a top-down design with most communication moving via a direct manager or supervisor.
In flat structures, there are fewer levels of management, promoting faster decision-making and a more empowered workforce.
A matrix structure combines functional and divisional structures, allowing employees to have multiple lines of responsibility.

Section 3: Elements of an Organisational Structure

A clear organisational structure includes defined job roles, identifying the key tasks and responsibilities of each role.
It will outline the line of reporting, showing who each role reports to and who reports to them.
It will also highlight communication channels, dictating how information flows through the organisation.

Section 4: Importance of Organisational Structures

Organisational structures provide an overview and guide of roles, responsibilities, and relationships between different employees and departments.
They are crucial in ensuring tasks are done by the appropriate people and streamlining decision making and communication process.
They foster a culture of accountability as job roles and reporting lines are clear.
A well-functioning structure can create efficiency and maximise productivity while improving job satisfaction and stakeholder relations.

Section 5: Impact of Organisational Structure on Performance

The structure influences how information is shared, how quickly decisions are made, and hence the speed of response to challenges or opportunities.
It influences employees’ behaviour and contributes to the overall business culture, which in turn can affect motivation and productivity.
A rigid, hierarchical structure may stifle innovation while a flat structure may lead to lack of control.

Section 6: Adapting Organisational Structures

Changes in business size, strategy or market may require modifications to the existing organisational structure.
An expanding business may need to introduce more levels of hierarchy for better control and coordination.
A changing market focused on innovation may see businesses move towards flatter structures to encourage creativity and flexibility.