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Organisational Structure

The organisational structure is the way in which an organisation divides its work activities, assigns roles and responsibilities, and establishes relationships among individuals and teams. It is the framework within which an organisation's tasks are divided, organised, and coordinated. The organisational structure also determines how authority, responsibility, and communication flow within the organisation.

The most appropriate structure for an organisation depends on a number of factors, such as the size and complexity of the organisation, the type of work it does, and its goals and objectives.

Common types of structure

A functional organisational structure, for example, is based on the grouping of individuals and teams by their common skills or expertise. This structure is common in organisations that have a clear hierarchy and a clear division of labour, and that operate in a stable environment.

A divisional organisational structure, on the other hand, is based on the grouping of individuals and teams by product, service, or geographic area. This structure is common in organisations that operate in a complex or dynamic environment, and that need to be responsive to the needs of different markets or regions.

In a matrix organisational structure, individuals and teams report to both functional and divisional managers, and there is a high degree of collaboration and coordination across different units. This structure is common in organisations that need to balance the benefits of specialisation with the need for flexibility and adaptability.

In a flat organisational structure, there is little hierarchy and a high degree of autonomy and empowerment at the individual and team level. This structure is common in organisations that are focused on innovation and value creation.

Overall, the organisational structure plays a critical role in determining how work is performed and coordinated within an organisation, and in shaping the organisation's ability to achieve its goals and objectives.

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Organisational Structure