Organisational Structure
Organisational Structure
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Introduction to Organizational Structures
Introduction to Organizational Structures
Every business, regardless of its size or industry, relies on a formal structure to operate effectively. This formal structure, known as the 'organizational structure', serves as the backbone of a company's operations, defining how tasks are divided, resources are utilized, and workflows are managed.
An organizational structure is not a static entity; it evolves alongside the business. As companies grow, diversify, or target new markets, their structures often need to adapt to meet changing needs. This flexibility ensures clear lines of communication, proper allocation of roles and responsibilities, and well-defined levels of authority within the workforce. Essentially, an organizational structure illustrates how a business arranges its employees and structures its different layers of management, typically presented in the form of a chart.
There are several types of organizational structures that businesses can adopt, including:
Before we investigate these four organisational structures in more detail, it’s important to be aware of some key pieces of terminology which are linked to organisational structures. These include:
Chain of Command
The natural pathway through the organisation which instructions and communications should flow because of the chosen organisational structure, showing who has the authority to delegate tasks and to which employees, and who each employee should report to in relation to their role. Chain of Command
Span of Control
The term used to express the number of employees which a manager is responsible for e.g. a large span of control would mean a manager is responsible for many employees. Span of Control
Subordinates
The employees who sit below the manager in the chain of command within the organisational structure.Subordinates
Delayering
The process where the organisation amends its organisational structure to make it Flatter by removing layers of management. Delayering
To explore more terminology for understanding organisational structures click on the button on the right
Each of these structures offers unique advantages and may be more suitable for different types of businesses or industries. Understanding these structures is crucial for both employees and managers, as it provides insight into the company's chain of command, communication channels, and decision-making processes.
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