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Organisational Structure

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Organisational structure is the hierarchical arrangement of tasks that determine how jobs are positioned and controlled in an organisation. Designing structures will help to coordinate and motivate employees so that they work together to achieve specific organisational goals. There is no “one best way” to design an organisation’s structure since all organisations are unique. The best design is one that is suitable to an organisation’s situation and culture (George and Jones, 2014). The structure of an organisation can be illustrated using organisational charts whereas an organisation’s culture is hidden and only demonstrated through actions.

The Simple Structure

Simple structure, also known as entrepreneurial structure, is based on centralisation and central power. One individual has the authority to make all the decisions and it usually has only two or three vertical levels consisting of the work allocation. This structure is generally adopted by small businesses in which the owner has the power to control all the resources. The efficiency of the simple structure lies in its simplicity. It’s fast, flexible, and inexpensive to operate. One major drawback is that it becomes gradually ineffective as an organisation grows. As size increases, decision-making becomes slower as the owner tries to continue making all the decisions. Moreover, it is risky when everything depends on one person. A single oversight can jeopardise the performance of the organisation (Judge and Robbins, 2012 P.487).

The Bureaucracy Structure

The bureaucratic structure focuses on the roles within an organisation. It emphasises strongly on the division of labour, tasks and responsibilities. Employees of such organisations are trained to perform specialised tasks and they are committed exclusively to the given tasks. This leads to efficiency in performance. Power and authority is visibly outlined in hierarchical models at each level of the organisation. A bureaucracy cannot be performed without having a set of formal rules or standard operating procedures firmly in place. These rules clearly state the tasks that each level of the organisation should perform, thus maintaining organisational stability (entrepreneurial-insights.com).

The Matrix Structure

In a matrix structure applies a dual-reporting relationship, meaning regardless of the work individuals are assigned to do, they will have to report to different departments in order to accomplish a specific task or project (entrepreneurial-insights.com). The strength of the matrix is its ability to facilitate coordination when the organization has a number of complex and interdependent activities. Direct and frequent contacts between different roles in the matrix can let information disseminate in the organisation (Judge and Robbins, 2012 P.489).

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