Unit 16: Organisational Structures

Organisational Structure

Hierarchy defining roles, authority, and information flow within an enterprise.

Authority

Power granted to individuals to make decisions (linked to position).

Responsibility

Obligation to perform assigned tasks effectively.

Accountability

Being answerable for outcomes (Authority + Responsibility).

Traditional Structure

Functional hierarchy; advantages include clear budgeting, disadvantages include slow customer response.

Product Structure

Organized by product lines; advantages include rapid decision-making, disadvantages include duplication.

Matrix Structure

Hybrid of functional and product structures; advantages include flexibility, disadvantages include dual reporting conflicts.

Workflow Drivers

Factors like task functions, geography, or collaboration needs that shape structure design.