Organisation Structure is a very important tool for a business entity because it assists strategic planners and top management in organising business tasks and allocating resources to departments, functions and divisions for overall goal accomplishment. In addition to above…
For instance, a structure also helps in creating internal divisions and functions, in formalisation, in departmenalisation, for team-building, in clarifying authority and position power. It is worthwhile to mention that an organisation’s managerial structure is visually represented by organisation chart that identifies all aforementioned characteristics.
A Vertical Functional structure is one in which information flows from top-to-bottom and bottom-to- top and where all decision making powers are enjoyed by a firm’s Owner, President or CEO. The organisational chart portrays total number of departments and their directors, divisional heads and managers that work under top management and that are handed over key responsibilities for conducting business operations.
The Divisional structure is also known as Product or Program structure because here the departments are grouped on basis of organisational output that could either be a good or service. Indeed, in such type of structure, each product division has all necessary, though small, departments such as Marketing, Production, Finance, IT etc.
The matrix structure is actually a combination of various aspects of vertical and divisional chain of command simultaneously in a business organisation. In fact, this type of structure is quite helpful because it facilitates interaction and internal communication among employed personnel in corporate setting. In addition, the structure has dual chain of authority.
The next structure is known as Team Approach where managers group employees into teams to ensure greater employee participation in business affairs, organisational flexibility, delegation and authority of tasks to lower managerial levels and greater coordination. In other words, this team structure promotes mutual accountability and responsibility about company goals and objects, which ...
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