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ORGANISATIONAL STRUCTURE
Organizational structure is a business's internal, formal framework that shows how management is linked together & how authority is transmitted. It defines roles, responsibilities, and communication pathways within the organization.
business objectives and organisational structure
requires adaptive organizational structures that can quickly respond to changing conditions.
Growth Requires Expansion
Demand for Flexibility in Competitive Markets
Global Sales Expansion
Innovation through R&D
Intrapreneurship
Intrapreneurship is when employees innovate and create new ideas within a company, acting like entrepreneurs but inside the organization.
Ensure high delegation and trust, minimizing direct management oversight.It encourages a culture of innovation and risk-taking, allowing employees to develop new products and services while leveraging company resources.
The Functional Organisational Structure
A functional structure divides a business into departments based on specific tasks
Employees within each department are grouped by their roles, like sales managers or market researchers in the marketing team
Strong Departmental Loyalty
Encouragement of Specialization
Efficient Work
Tunnel Vision
Communication Barriers:
Challenges in Cross-Departmental Coordination
The hierarchical organizational structure
In a hierarchical structure, the organization is divided into different layers, with fewer people at each higher level.
Each level in a hierarchy represents a rank or grade of staff, with lower levels subordinate to higher ones.
Centralized Decision-Making
Clear Chain of Command
Promotes stability and control.
Clear Role Definitions
Limited Horizontal Coordination
Departmental Tunnel Vision
Inflexibility and Resistance to Chang
Bureaucratic Decision-Making
