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ORGANISATION DESIGN AND STRUCTURE Global Research on Organisational Structure Types, Benefits, and Design Principles
Factors Influencing Structural Design  How should an organisation decide on the best design for itself?  Structural Design Environment Worldwide Operations Organisation Size Organisation Strategy Technology How stable is the business environment? How easily available are raw materials? Does the organisation have global reach or branch offices worldwide? What are the organisation’s strategies to meet future goals and vision? What resources and technology are used throughout the organisation? How large is the organisation and what are aspects of its core business?
Structural Design Options What are common and emerging types of structures?  Structure Type Description Functional Top-down, specialized departments reporting through separate chains of command, joined only at the top Divisional Each unit or division dedicated to one product, geographic area, common technology, or customer base Matrix Combination of functional and self-contained units, lateral teams imposed on functional departments Process-Based Process Owners drive team-based strategic execution with customer oriented goals in mission-based processes Network Separate units either internal or external to the company, each unit specializes in a business task or function held together by ad hoc arrangements
Each department is a function common to the entire organisation with its own chain of command. All join only at the top. The Functional Structure Advantages Disadvantages Works Best When.. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Each divisional unit is responsible for either a product, geographical area, or customer base. Each division has its own functions such as Finance, Operations, etc. The Divisional Structure Advantages Disadvantages Works Best When.. ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Matrix Structure Projects Functional departments focus on specialized resources while lateral project/product teams focus on outputs. Some employees will report to a functional manager and a product manager. Advantages Disadvantages Works Best When.. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Process-Based Structure Corporation is centered around key processes that define its work, driven by Process Owners. Teams manage everything from task execution to strategic planning with team-based rewards, customer-oriented goals.  Advantages Disadvantages Works Best When.. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Network Structure An “Internal Market Network” structure exists when the organisation establishes each subunit as an independent profit center allowed to buy and sell services to each other and the external market. The “Externally Networked Organisation” develops temporary relationships with external corporations and institutions to meet goals. Advantages Disadvantages Works Best When.. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Organisation Structure

  • 1. ORGANISATION DESIGN AND STRUCTURE Global Research on Organisational Structure Types, Benefits, and Design Principles
  • 2. Factors Influencing Structural Design How should an organisation decide on the best design for itself? Structural Design Environment Worldwide Operations Organisation Size Organisation Strategy Technology How stable is the business environment? How easily available are raw materials? Does the organisation have global reach or branch offices worldwide? What are the organisation’s strategies to meet future goals and vision? What resources and technology are used throughout the organisation? How large is the organisation and what are aspects of its core business?
  • 3. Structural Design Options What are common and emerging types of structures? Structure Type Description Functional Top-down, specialized departments reporting through separate chains of command, joined only at the top Divisional Each unit or division dedicated to one product, geographic area, common technology, or customer base Matrix Combination of functional and self-contained units, lateral teams imposed on functional departments Process-Based Process Owners drive team-based strategic execution with customer oriented goals in mission-based processes Network Separate units either internal or external to the company, each unit specializes in a business task or function held together by ad hoc arrangements
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.