Organisational Structure

1980 Words8 Pages
Contents Introduction 2 Organisation structure 2 Types of structures 3 Functional Structure 3 Divisional Structure 4 The Matrix Structure 5 Team-based structure 6 Network structure 7 Factors that affect structure 7 Conclusion 8 Bibliography 9 Introduction The purpose of this paper is to explore organisational structure, examine the aspects that impact the structure of an organisation and discuss how managers should use this information. Organisation structure The organising process leads to the creation of organisation structure.Organisation structure can be defined as the framework in which the organisation defines how tasks are divided, resources are deployed and departments are coordinated (Samson & Daft, 2009, p.…show more content…
The company is divided into separate units based on different products or markets. The company breaks up its operations into manageable units or little companies which then operate under a mechanistic structure. The units may share some corporate resources, such as research and development facilities, but overall, they are relatively autonomous. The units are guided by a corporate-level strategy which outlines the desired results. However, the units are free to realize corporate-level objectives of their own choosing. Hence, this structure is much more flexible and adaptable to market and product needs than the functional structure (Martinsons & Martinsons, 1994, p. 24). Advantages of divisional structure • Fast response, flexibility in an unstable environment • Fosters concern for customers’ needs because product responsibility and contact points are clear • Excellent coordination across functional departments • Easy pinpointing of responsibility for product problems • Emphasis on overall product and division goals • Development of general management skills • Best in large organisation with several products Disadvantages of
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