Understanding Organizational Structures
Understanding Organisational Structures
Basics of Organisational Structures
- An organisational structure defines how activities such as task allocation, coordination, and supervision are directed towards the achievement of organisational aims.
- The structure depends entirely on the organisation's objectives and the strategy chosen to achieve them.
- Bureaucracies, hierarchies, and matrix structures are common types of organisational structures.
Features of Organisational Structures
- Clear role definitions and responsibilities: Allows all personnel to understand their roles and the roles of others.
- The chain of command: This keeps intermediaries from bypassing their superiors.
- Clear lines of communication: Necessary for accurate, direct communication.
- Flexibility: To keep up with business environment changes, the structure must adapt.
Bureaucratic Structures
- Bureaucratic structures have a certain degree of standardisation.
- Often, they are better suited for large-scale organisations
- They can be less flexible, which could hamper the organisation's growth if it plans to diversify or expand.
Hierarchal Structures
- A hierarchal structure is commonly used within companies, with different levels of staff from the chief executive officer (CEO) down to non-managerial levels.
- One of the main features of this structure is the clear line of command in the form of decision making. Decision making tends to be slower therefore, as it must pass through each layer of the structure.
Matrix Structures
- A matrix structure is essentially a cross between bureaucratic and project-based structures.
- It entails employees working on multiple projects in different capacities but still having a basic 'home' department.
- Matrix structures can assist in improving efficiency and resource utilisation.
Importance of Organisational Structures
- Effective organisational structures can improve efficiency and deliver greater clarity for everyone within the organisation.
- They shape corporate culture and influence how an organisation learns, performs, and changes.
- By deciding on a suitable structure, businesses can ensure that their operations run smoothly and their goals are more likely to be reached.