Organisational structures
Management structures identify the different departments in an organization and set out who answers to whom in the chain of command.
The traditional types of organisational structure are functional or divisional.
In a functional structure, the organisation is divided up into different functional areas or departments, such as Marketing, Finance and Production.
Multi-divisional structures also exist, where the organisation is divided along geographical or product divisions. This allows the company to grow and develop in new parts of the world and to add new combinations of products. A multi-divisional matrix may also be adopted. This is a combination of product and geographical divisions that allows a large company to adapt products for particular markets.
Matrix structures are especially used in large organizations that have a number of clearly defined projects. Organisations with one single owner, a sole trader, often have no formal structure.
Large organisations may have a tall structure, with complex hierarchies and many layers of management, but even a very large organisation can have a flat structure, with only a few levels of management.
An organisation chart is a diagram showing relationships between different jobs and departments. It may identify the various functional departments, the hierarchy, from the CEO and the Board of Management downwards, and the lines of responsibility, to identify reporting channels (including individual managers’ spans of control).
Management structures identify the different departments in an organization and set out who answers to whom in the chain of command.
The traditional types of organisational structure are functional or divisional.
In a functional structure, the organisation is divided up into different functional areas or departments, such as Marketing, Finance and Production.
Multi-divisional structures also exist, where the organisation is divided along geographical or product divisions. This allows the company to grow and develop in new parts of the world and to add new combinations of products. A multi-divisional matrix may also be adopted. This is a combination of product and geographical divisions that allows a large company to adapt products for particular markets.
Matrix structures are especially used in large organizations that have a number of clearly defined projects. Organisations with one single owner, a sole trader, often have no formal structure.
Large organisations may have a tall structure, with complex hierarchies and many layers of management, but even a very large organisation can have a flat structure, with only a few levels of management.
An organisation chart is a diagram showing relationships between different jobs and departments. It may identify the various functional departments, the hierarchy, from the CEO and the Board of Management downwards, and the lines of responsibility, to identify reporting channels (including individual managers’ spans of control).