Organisational Structures and Functional Areas

Organisational Structures

Organisations use various structures to organise their operations. These can range from simple to complex.

Hierarchy: This refers to the levels of management in an organisation, from top (executives) to bottom (operational staff). The pathway of communication and decision making flow down this hierarchy.
Flat structure: In such a structure, there are few or no levels of management between staff and executives. This encourages greater collaboration and faster communication.
Matrix structure: This involves employees from different parts of the organisation working together on projects. It’s characterised by flexible teams and shared responsibilities.
Centralised/De-centralised structure: In a centralised structure, decision making authority is concentrated at the top level. In a de-centralised structure, the authority to make decisions is distributed across the organisation.

Functional Areas

Functional areas are specific departments within an organisation that perform specific tasks related to the company’s goals.

Finance: Responsible for managing the organisation’s money, including budgeting, payroll, and financial reporting.
Marketing: Focused on promoting and selling the organisation’s products or services. This includes market research, advertising, and customer relations.
Operations: Involves the management of the processes that produce or deliver the organisation’s products or services.
Human Resources (HR): Handles matters related to staff, such as recruitment, training, employee relations, and performance management.
Research and Development (R&D): Responsible for innovating, designing, and developing new products or services.
Customer Service: In charge of ensuring customer satisfaction, handling customer queries, complaints, and providing after-sales support.

Knowing and understanding these structures and functional areas will aid in navigating the business world and recognising the diversity within organisations.