Business Organizational Design,structure

Organisational Design

Business organisational design describes the overall structure and operation of a business, including its environment, strategy, people, culture, and functions.　Good organisational design helps improve efficiency, communication, employee engagement, and supports business growth and better outcomes.

Organisational Structure

Structure of the business. Either tall or flat structure and can be either centralised or decentralised.

Hierarchy

a sysytem that places people according to their level of authority in a business

Tall Structure

Many levels of hierarchy. There is a chain of control over various levels within it and lines of communication and commands are long. Tasks are delegated throughout the structure and there are opportunities for people to grow, develop and promotion.

Decentralised

The authority is delegated throughout the organizational hierarchy and decisions are made more slowly. Decisions are made and command in present at various level in the structure

Flat Structure

Few levels of hierarchy. Communication lines are short and decision making is simple. Normally one level of authority is reponsible for all levels of control

Centralised

Authority is taken by one person who makes the majority of decisions and is flown from the top to the bottom of the hierarchy

Size, Type, Leadership and Management, Environment

The four factors to decide a organisational structure

1.Strategic Direction 2.Size and Stage 3.Types of structure 4.Create an Organizational Chart

4 steps of deciding an organisational structure

Simple,Functional,Divisional

Three different types of Organisational structures

Simple Structure

No formalization of work. Usually a flat structure. Common in small businesses or start-ups. Authority is in one person and has tight control of business. However, the owner’s workload increases and formalisation lacks.

Functional Structure

One of the most common structures. Sructured and hierarichal. Grouped into departments in specialised areas and employees are assigned based on experties. Efficient but communication between departments are reduced

Divisional Structure

Groups by devisions that exist within a business. Could correspond to product lines, customer or geographical location. Very structured and hierarchial. High degree of specialisation within specific divisions. Disadvantages are duplication and incompatibilities may occur.