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The word 'structure' has several uses:
    1: a particular complex or part of a living thing;
   2: the manner of construction of something and
    the arrangement of its parts;
   3: give a structure to;
   4: the complex composition of knowledge as
    elements and their combinations;
   5: the people in a society considered as a
    system organized by a characteristic pattern of
    relationships;
   Releted to business, Structure business
    Is nothing but a systametic business
    where all the work is monitored by some
    or the other authority.

   Un structured business may Leeds to
    lack of control of organization, and
    control of management.
Why Have a Structure?
   All businesses have to organise
    what they do

   A clear structure makes it easier to see
    which part of the business does what

   There are many ways
    to structure a business
Some Key Terms
   Flat or tall structure
   Span of control
   Chain of command
   Hierarchy
   Delegation
   Empowerment
Ways to Structure a Business
   By function: arranging the business according
    to what each section
    or department does ex. Editing sec,
    publishing section, printing section

   By product or activity: organising according to
    the different products made
    ex.Dabur honey, Dabour Chavanprash etc

   By area: geographical or regional structure
    ex.braches,Head offices ,exc..
Ways to Structure a Business
   By customer: where different customer
    groups have different needs

   By process: where products have to go
    through stages as they are made

   What are the advantages/disadvantages
    of different types of business structure?
Pros and Cons of Different
Structures
  This depends on the business type, size
   and structure used
  Let’s look at a functional structure:
                          Chief Executive



                         Board of Directors




Production   Marketing       Accounts         Personnel   IT
Functional Structure
     Advantages                  Disadvantages
    Specialisation – each      Closed
     department focuses          communication could
     on its own work             lead to lack
                                 of focus
    Accountability –           Departments can
     someone is                  become resistant
     responsible for the         to change
     section                    Coordination
    Clarity – know your         may take too long
     and others’ roles          Gap between top and
                                 bottom
An Example of Organisation by
  Product/Activity
                                 Hewlett Packard (H.P)




 Imaging and        Personal         Enterprise                        HP Financial
                                                         HP Services
Printing Group   Systems Group     Systems Group                        Services
Organisation by Product/Activity
    Advantages                   Disadvantages
   Clear focus on market       Duplication of functions
    segment helps meet           (e.g. different sales
    customers’ needs             force for each division)
   Positive competition
    between divisions
                                Negative effects of
                                 competition
   Better control as each
    division can act as         Lack of central control
    separate profit centre       over each separate
                                 division
Hewlett-Packard’s Headquarters Worldwide


                       Hewlett Packard (H.P)




  Americas           Europe, Middle East, Africa   Asia Pacific
Houston, Texas           Geneva, Switzerland        Hong Kong
Organisation by Area
    Advantages                   Disadvantages

   Serve local needs           Conflict between local
    better                       and central
   Positive competition         management
   More effective              Duplication of
    communication                resources and
    between firm and local       functions
    customers
Orgstructures edited

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Orgstructures edited

  • 1.
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  • 3. The word 'structure' has several uses:  1: a particular complex or part of a living thing;  2: the manner of construction of something and the arrangement of its parts;  3: give a structure to;  4: the complex composition of knowledge as elements and their combinations;  5: the people in a society considered as a system organized by a characteristic pattern of relationships;
  • 4. Releted to business, Structure business Is nothing but a systametic business where all the work is monitored by some or the other authority.  Un structured business may Leeds to lack of control of organization, and control of management.
  • 5. Why Have a Structure?  All businesses have to organise what they do  A clear structure makes it easier to see which part of the business does what  There are many ways to structure a business
  • 6. Some Key Terms  Flat or tall structure  Span of control  Chain of command  Hierarchy  Delegation  Empowerment
  • 7. Ways to Structure a Business  By function: arranging the business according to what each section or department does ex. Editing sec, publishing section, printing section  By product or activity: organising according to the different products made ex.Dabur honey, Dabour Chavanprash etc  By area: geographical or regional structure ex.braches,Head offices ,exc..
  • 8. Ways to Structure a Business  By customer: where different customer groups have different needs  By process: where products have to go through stages as they are made  What are the advantages/disadvantages of different types of business structure?
  • 9. Pros and Cons of Different Structures  This depends on the business type, size and structure used  Let’s look at a functional structure: Chief Executive Board of Directors Production Marketing Accounts Personnel IT
  • 10. Functional Structure Advantages Disadvantages  Specialisation – each  Closed department focuses communication could on its own work lead to lack of focus  Accountability –  Departments can someone is become resistant responsible for the to change section  Coordination  Clarity – know your may take too long and others’ roles  Gap between top and bottom
  • 11. An Example of Organisation by Product/Activity Hewlett Packard (H.P) Imaging and Personal Enterprise HP Financial HP Services Printing Group Systems Group Systems Group Services
  • 12. Organisation by Product/Activity Advantages Disadvantages  Clear focus on market  Duplication of functions segment helps meet (e.g. different sales customers’ needs force for each division)  Positive competition between divisions  Negative effects of competition  Better control as each division can act as  Lack of central control separate profit centre over each separate division
  • 13. Hewlett-Packard’s Headquarters Worldwide Hewlett Packard (H.P) Americas Europe, Middle East, Africa Asia Pacific Houston, Texas Geneva, Switzerland Hong Kong
  • 14. Organisation by Area Advantages Disadvantages  Serve local needs  Conflict between local better and central  Positive competition management  More effective  Duplication of communication resources and between firm and local functions customers