Organisational Structures : Introduction
Organisations are structured in a variety of ways, dependant on their
objectives and culture. The structure of an organisation will determine
the manner in which it operates and it’s performance. Structure
allows the responsibilities for different functions and processes to
be clearly allocated to different departments and employees.
The wrong organisation structure will hinder the success of the business.
Organisational structures should aim to maximize the efficiency and
success of the Organisation. An effective organisational structure will
facilitate working relationships between various sections of the organisation.
It will retain order and command whilst promoting flexibility and creativity.
Internal factors such as size, product and skills of the workforce
influence the organizational structure. As a business expands the chain
of command will lengthen and the spans of control will widen. The higher
the level of skill each employee has the more the business will make
use of the matrix structure to maximize these skills across the organization.
Span of Control
This term is used to describe the number of employees that each manager/supervisor
is responsible for. The span of control is said to be wide if a superior
is in charge of many employees and narrow if the superior is in charge
of a few employees.
The most common organisation structures are:
· Centralised and