Organisational Structures and Functional Areas

Organisational Structures

An organisational structure refers to how a business, or an organisation, arranges its lines of authority and communications.
A well-defined structure provides a blueprint of the relationships and responsibilities within an organisation.
Common types of organisational structures include hierarchical, flat, matrix, and project-based.
In a hierarchical structure, power is defined clearly with a top-down model. Employees report to a single direct manager.
A flat structure lessens the layers of middle management. Communication, in this structure, is often better as fewer layers exist.
The matrix structure uses teams of employees to accomplish work, creating flexibility and fostering a collaborative environment.
A project-based structure is where employees are grouped by projects they are working on.
Changes in organisational structure can significantly impact an employee’s duties and responsibilities, potentially leading to recruitment needs.

Functional Areas

Functional areas refer to different sectors of an organisation, each supporting specific roles critical to the operation of a company.
The common functional areas in businesses include departments such as the Marketing, Human Resources (HR), Research and Development (R&D), Production, Sales, Customer service, Finance, and IT departments.
Each department has a specific function and role to fulfil in the business. For example, the role of the HR department is to manage employees ensuring compliance with regulations and improving their performance.
Each department may require different skills and qualifications for employment. For instance, a Finance department would need employees with strong numerical skills and qualifications in accounting or finance.
Understanding each functional area and the roles within them is crucial when selecting candidates for employment.

Now that we have reviewed organisational structures and functional areas in businesses, it’s important to recognise how these areas interlink with the recruitment, selection and employment processes. Highlighting the necessary skills, qualifications, and experience required for a certain role within the functional areas will assist greatly when recruiting, selecting and employing candidates.