Published online by Cambridge University Press: 05 June 2014
Every company has two organisational structures: the formal one that is written on the charts; the other is the everyday relationship of the men and women in the organisation.
Harold S. GreneenIn this chapter we will explore the area of organisation structure. The reporting lines, allocation of activities, and clustering of departments are all ways of thinking about structure in an organisation. Structure is the form that the organisation takes in executing processes, decision-making, and working towards the business strategy.
Of course, there are many types of structures and the topic of how to organise an entity can be complex when considering the variety of factors such as market orientation, size of firm, types of discipline, nature of work activities, location of operations, cost profiles, risk factors, regulatory impacts, and the like. We will review some of the key areas in designing an organisation as well as the component parts such as jobs and teams.
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