Section 1: Understanding Organisational Structures

• An organisational structure defines how activities within an organisation are arranged and coordinated.
• It establishes the chain of command or hierarchy within the organisation.
• It sets out the lines of authority, responsibility, and communication.

Section 2: Types of Organisational Structure

• A hierarchical structure has a top-down design with most communication moving via a direct manager or supervisor.
• In flat structures, there are fewer levels of management, promoting faster decision-making and a more empowered workforce.
• A matrix structure combines functional and divisional structures, allowing employees to have multiple lines of responsibility.

Section 3: Elements of an Organisational Structure

• A clear organisational structure includes defined job roles, identifying the key tasks and responsibilities of each role.
• It will outline the line of reporting, showing who each role reports to and who reports to them.
• It will also highlight communication channels, dictating how information flows through the organisation.

Section 4: Importance of Organisational Structures

• Organisational structures provide an overview and guide of roles, responsibilities, and relationships between different employees and departments.
• They are crucial in ensuring tasks are done by the appropriate people and streamlining decision making and communication process.
• They foster a culture of accountability as job roles and reporting lines are clear.
• A well-functioning structure can create efficiency and maximise productivity while improving job satisfaction and stakeholder relations.

Section 5: Impact of Organisational Structure on Performance

• The structure influences how information is shared, how quickly decisions are made, and hence the speed of response to challenges or opportunities.
• It influences employees’ behaviour and contributes to the overall business culture, which in turn can affect motivation and productivity.
• A rigid, hierarchical structure may stifle innovation while a flat structure may lead to lack of control.

Section 6: Adapting Organisational Structures

• Changes in business size, strategy or market may require modifications to the existing organisational structure.
• An expanding business may need to introduce more levels of hierarchy for better control and coordination.
• A changing market focused on innovation may see businesses move towards flatter structures to encourage creativity and flexibility.