Organisational Structure
Contents
Introduction 2
Organisation structure 2
Types of structures 3
Functional Structure 3
Divisional Structure 4
The Matrix Structure 5
Team-based structure 6
Network structure 7
Factors that affect structure 7
Conclusion 8
Bibliography 9
Introduction
The purpose of this paper is to explore organisational structure, examine the aspects that impact the structure of an organisation and discuss how managers should use this information.
Organisation structure
The organising process leads to the creation of organisation structure.Organisation structure can be defined as the framework in which the organisation defines how tasks are divided, resources are deployed and departments are coordinated (Samson & Daft, 2009, p. 328). The structure of an organisation should be set up in such a way as to help the organisation accomplish its mission in an efficient and effective manner. The mission of an organisation can be defined by its mission statement. “A mission statement is designed to answer the most fundamental questions for every organization: Why do we exist? What are we here for? What is our purpose? As such, mission statements form the corner-stone and the starting-point for any major strategic planning initiative” (Christopher K. Bart, 2001, p. 19). An organisation’s structure can be represented visually with an organisation chart (Samson & Daft, 2009, p. 328).
Structure has three components: complexity, formalisation and centralisation. Complexity refers to thedegree of specialisation of an organisation’semployees, how labour is divided, thenumber of levels and geographicaldispersion. Formalisation is concerned withthe degree of rules and procedures, andcentralisation refers to levels of decisionmaking (Holtzhausen, 2002, p. 325).
The characteristics of organisation structure include work specialisation (the degree to which organisational tasks are subdivided into individual jobs; also called division of labour), chain of command (An unbroken
Introduction 2
Organisation structure 2
Types of structures 3
Functional Structure 3
Divisional Structure 4
The Matrix Structure 5
Team-based structure 6
Network structure 7
Factors that affect structure 7
Conclusion 8
Bibliography 9
Introduction
The purpose of this paper is to explore organisational structure, examine the aspects that impact the structure of an organisation and discuss how managers should use this information.
Organisation structure
The organising process leads to the creation of organisation structure.Organisation structure can be defined as the framework in which the organisation defines how tasks are divided, resources are deployed and departments are coordinated (Samson & Daft, 2009, p. 328). The structure of an organisation should be set up in such a way as to help the organisation accomplish its mission in an efficient and effective manner. The mission of an organisation can be defined by its mission statement. “A mission statement is designed to answer the most fundamental questions for every organization: Why do we exist? What are we here for? What is our purpose? As such, mission statements form the corner-stone and the starting-point for any major strategic planning initiative” (Christopher K. Bart, 2001, p. 19). An organisation’s structure can be represented visually with an organisation chart (Samson & Daft, 2009, p. 328).
Structure has three components: complexity, formalisation and centralisation. Complexity refers to thedegree of specialisation of an organisation’semployees, how labour is divided, thenumber of levels and geographicaldispersion. Formalisation is concerned withthe degree of rules and procedures, andcentralisation refers to levels of decisionmaking (Holtzhausen, 2002, p. 325).
The characteristics of organisation structure include work specialisation (the degree to which organisational tasks are subdivided into individual jobs; also called division of labour), chain of command (An unbroken
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