Why Does Organisational Structure Matter? Essay

2548 Words Dec 23rd, 2015 11 Pages
119SAM
Organising for Business
Coursework 1

1. Why does organisational structure matter? Illustrate your answer using appropriate examples
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This essay will look thoroughly at organisational structure and its importance to businesses. How an organisation is structured determines the way it operates and performs.

An organisational structure is the way in which a business divides and uses its resources to complete a variety of task to ensure that objectives are met. It clearly allocates responsibilities to employees and departments. The way an organisation is structures will be dependent on the objectives they hope to achieve. An effective organisational structure should be suited to
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The firm is likely to be more unorganised and it is much harder for them to coordinate efforts through their staff. Also a firm with poor organisational structure will find it more difficult to be alert and take full advantage of new opportunities.

Managers should try and create an organisation where jobs and work groups are assembled in an organisational structure. Furthermore it is important that the organisational structure covers all tasks required to add value and make the business more successful. The choice of organisational structure should also improve communication channel within the firm. The three main types of organisational structures consist of; functional, divisional and matrix

In a functional structure, groups are created to perform a series of specialised tasks. For example an organisation is able to split its organisation according to functions such as marketing, public relations, sales and human resources. Functional structures attempts to bring together people with similar skills and expertise. By developing a team of like-minded individuals with similar skills they are able to support and advise each other through a wider range of activities. This type of organizational structure can follow both a flat or tall chain of command.

Using a functional structure can bring a number of advantages to the organisation. One of the key advantages includes an increase in operational efficiency. This

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