ORGANISATIONAL STRUCTURE

hrm alevel chap 13

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