Organisational Structures Overview

Organisational structure refers to how roles, responsibilities, and power are arranged and coordinated within an organisation.
This structure typically illustrates the hierarchy and flow of information, making it clear who reports to whom.

Types of Organisational Structures

A Flat or Horizontal Structure has few or no levels of middle management between staff and executives.
A Tall or Vertical Structure includes multiple layers of management between frontline employees and the corporate level.
Matrix Structure has employees reporting to more than one leader, combining functional and product lines.
A Functional Structure separates the company based on the functions or roles like HR, finance, marketing, etc.
Divisional Structure organises people around products, markets or geography, focusing more on output.

Importance of Organisational Structures

It establishes a chain of command and responsibility, where every employee understands their role within the hierarchy.
It streamlines communication channels, ensuring information reaches the right persons without unnecessary delay.
It sets out roles and responsibilities, helping to avoid confusion and duplication of work.

Impact on Employee Performance

A fitting organisational structure can lead to increased employee productivity and job satisfaction.
A poorly conceived structure can hinder communication, leading to lower morale, increased turnover, and reduced performance.

Role in Decision Making

In a centralised structure, decision-making power is held at the top levels of management.
In a decentralised structure, decision-making power is distributed among lower-level employees.

Changing Organisational Structure

Organisations may need to alter their structure as they grow, downsise, or adapt to new markets or technologies.
However, introducing changes should be done thoughtfully, as it can be disruptive and potentially harm employee morale and productivity.

Remember, having the right organisational structure can simplify tasks and decision making, and promote effective communication. However, no one structure fits all organisations. The structure should align with the organisation’s objectives, industry, and culture.