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Organisational Structure

Organisational Structure. How the business is put together. Organisational Structure. Why does a business need structure? It enables large businesses to organise their activities It makes it easier to see which part of the business does what

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Organisational Structure

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  1. Organisational Structure How the business is put together

  2. Organisational Structure Why does a business need structure? • It enables large businesses to organise their activities • It makes it easier to see which part of the business does what • Shows where each employee fits into the organisation

  3. Hierarchical Structures • Many businesses develop a hierarchical structure (it looks like a pyramid) • Hierarchies may be tall or flatter • Americans refer to them as “organigrams”

  4. Advantages Good coordination of activities Clear job roles and pay structure Clear channels of communication Good promotion prospects Disadvantages Long channels of communication Slow to react to changes and slow decision-making People at the bottom may feel that people at the top have no idea what they think or do Hierarchies

  5. Some Key Terms used in Hierarchies • Span of Control • Chain of Command • Responsibility • Delegation • Empowerment

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