An organisation structure of an business is vital for an organisation to make it to operating successfully, however the organisation structure should match the needs of the organisation like there functional needs, appropriate lines of communication and the structure to help the organisation to achieve there preventing and solution goals. Organisational structure is particularly important for decision making. Most companies either have a tall or flat organisational structure. Small companies usually use a flat organisational structure. For example, a manager can report directly to the president instead of a director, and her assistants are only two levels below the president. Flat structures enable small companies to make quicker decisions, as they are often growing rapidly with new products and need this flexibility. The Business Plan, an online reference website, says small companies should not even worry about organisational structure, unless they have at least 15 employees. The reason is that employees in extremely small organisations have numerous responsibilities, some of which can include multiple functions. For example, a product manager also might be responsible for marketing research and advertising.
The importance of organisational structure is particularly crucial for communication. Organisational structure enables the distribution of authority. For example; when a person starts a job, he knows from day one to whom he will report. Most companies funnel their communication through department leaders. For example, marketing employees will discuss various issues with their director. The director, in turn, will discuss these issues with the vice president or upper management.
Organisational structure enables...
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...who is who’s bitch
• Hierarchy- members of organisation ranked based on authority
• System used define hierarchy (see key words) within organisation
• Different ways can be structured by:
• Function- part organisation designed to do something e.g. HR fire and hire
• Geographical area- where the business is located
• Product group- having separate divisions
• Type of consumer- different areas that deal different types customer
Advantages and disadvantages
• Employees know who to report to when there is an issue or there are questions that need answered
• Helps new employees understand who they are working with
• Helps organise workload
• Organisational charts have always be updated, keeping them right can be hard, especially large companies
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