Organisation Structure and Why it is needed!

-The organisational structure defines the organisation’s hierarchy of people and departments as well as how information flows within the organization.

-The organisational structure determines how and when information is distributed as well as who makes what decisions based on the information available.

-How job tasks are formally divided, grouped and coordinated.

                  

The importance of the Organizational Structure

The Organisational Structure is important because it ensures that there is an efficient operation of a business and it clearly defines  its workers and their functions.

The organisational structure also helps define the hierarchy and the chain of command.

The Concept of Organisation Structure

-Structure helps influence behaviour and relationships of jobs and functions

-Structure defines recurring activities and processes.

-Structure provides a purposeful and goal-oriented behaviour.


The effects of structure on individual and group

The structure of any organisation will affect the   following:-

1.Behaviour of how people act and work

2.Motivation of workers

3.Performance

4.Teamwork and cooperation

5.Intergroup and interdepartmental relationships

TYPES OF STRUCTURES

I.  Functional structure – this kind of organisational structure classifies people according to the function they perform in the organization. The organisation chart for a functional based organisation consists of:  Vice President, Sales department, Customer Service Department, Engineering or production department, Accounting department and Administrative department.

oProduct structure – a product structure is based on organizing employees and work on the basis of the different types of products. If the company produces three different types of products, they will have three different divisions for these products.

II.   Line Structure:  This has a very specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line. Hence the name line structure. This kind of structure is suitable for smaller organizations. This is the sort of structure allows for easy decision making, and is  very informal in nature. They have fewer departments, which makes the entire organization a very decentralized one.

III.  Line and Staff Structure:  Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates.

 

IV  MARKET STRUCTURE

Market Structure – market structure is used to group employees on the basis of specific market the company sells in a company could have three different markets they use and according to this structure, each would be a separate division in the structure.