4. Forms of Business Structure
Pyramid
Entrepreneurial
Matrix
Independent
5. Illustrating Structures 1
The Pyramid
Traditional
view of
organisations
Decisions pass
down formal Information flows
channels from up formal channels
managers to from staff to
staff management
6. Illustrating Structures 2
Entrepreneurial
Key Key
Quick to act but
worker worker
pressure on
decision makers
One or two
Most small Decision people make
businesses have this maker decisions
structure
Great reliance on
key workers
Key Key
supporting decision
worker worker
makers
7. Illustrating Structures 3
Matrix
Marketing Production Finance
Project A
Project teams Staff with
created specialist skills
Project B
8. Illustrating Structures 4
Independent
Not suited to most
Dr A businesses due to
lack of control Dr B
Support systems
to professionals
such as doctors
Dr D Dr C
9. More on Business Structure
Centralization Decentralization
Concentration of Distribution of
authority . authority.
Costs can be cut by
standardizing Better knowledge of
purchasing and so on those closer to
Strong leadership customers
Good staff development
10. Vertical/Lateral Communication
Board of Directors
Finance Marketing Production
Finance Marketing Factory
Assistants Operatives
Officers
11. Barriers
Anything that prevents successful
communication from occurring,
Complex and multi-layered,
Technical or generated
by the medium used,
Human behaviour and
psychology,
etc...