Organisational structures

What are organisational structures?

the way a business I arranged to carry out its activities

What is the Functional structure?

when the business is organised by departments like HR, marketing and Finance

An advantage of a business using the functional structure?

clear roles and efficient resource use

A disadvantage of a business using the functional structure?

poor inter department communication

What is the divisional structure?

When the business is divided by products, services or regions

An advantage of a business using the divisional structure?

better accountability

A disadvantage of a business using the divisional structure?

less collaboration between divisions

What is the Matrix structure?

a combination of functional and divsional

An advantage of a business using the matrix structure?

flexibility

A disadvantage of a business using the matrix structure?

complex management

What is the flat structure?

when a business has few management layers and a wide span of control

An advantage of a business using the flat structure?

quicker decisions

A disadvantage of a business using the flat structure?

hard to achieve promotions

What is the Hierarchal structure?

when the business has a clear top down chain of command

A advantage of a business using the hierarchal structure?

easier management

A disadvantage of a business using the hierarchal structure?

poor communication