Organizational Structures in Business
Organisational structures
Most businesses are organised into structures because having a structure enables them to meet their purposes and aims and it also means that each employee will be divided into the job they specialise in which would mean an increase in production and an increase in sales for the company, this also means each employee is clear on what they have to do. An organisational structure is also established so that there are no conflicts in opinions about what decision to make between employees, which means employees lower down the organisation can report to the head/ senior of their department before going through with a decision, meaning better communication will also be established with an organisational structure.
There are different types of structures which can be used to structure an organisation, some of the ways include: * Functional- employees in the functional structured organisations are usually expected to perform a specialized set of tasks, for example the accounting department would only have accountants as their employees, and this means an increase in production but can also mean a lack of communication between different functional departments which would mean production in a business would be slow and inflexible. A functional structure is best suited to business whose target aim is sell large volumes of goods at low prices. Other departments in this structure include production, finance, marketing and many more. * Divisional- divisional structure is a structure where each organisational function is grouped into a division. All the required resources and functions are contained in each division in a divisional structure. Divisions can be structured into different types, there can be one made on a geographical basis; for example an EU division, or there could be division on a product/service basis; for example variety of products from different householders or companies. Like a functional structure a divisional structure
Most businesses are organised into structures because having a structure enables them to meet their purposes and aims and it also means that each employee will be divided into the job they specialise in which would mean an increase in production and an increase in sales for the company, this also means each employee is clear on what they have to do. An organisational structure is also established so that there are no conflicts in opinions about what decision to make between employees, which means employees lower down the organisation can report to the head/ senior of their department before going through with a decision, meaning better communication will also be established with an organisational structure.
There are different types of structures which can be used to structure an organisation, some of the ways include: * Functional- employees in the functional structured organisations are usually expected to perform a specialized set of tasks, for example the accounting department would only have accountants as their employees, and this means an increase in production but can also mean a lack of communication between different functional departments which would mean production in a business would be slow and inflexible. A functional structure is best suited to business whose target aim is sell large volumes of goods at low prices. Other departments in this structure include production, finance, marketing and many more. * Divisional- divisional structure is a structure where each organisational function is grouped into a division. All the required resources and functions are contained in each division in a divisional structure. Divisions can be structured into different types, there can be one made on a geographical basis; for example an EU division, or there could be division on a product/service basis; for example variety of products from different householders or companies. Like a functional structure a divisional structure