Organisational Structure - Introduction

Welcome to the Organisational structure chapter! Organisational structure determines how an organisation sets out its functional flows, with a clear division of tasks in various departments.

Firstly, this chapter will look at the fundamental issues of overall structure regarding centralisation and departmentalisation. Subsequently, it will then address resulting issues such as work process design; for instance, functional versus matrix structures and so on.

Other key topics involve the hierarchy that is established in the firm, stemming from the core question of centralisation versus decentralisation. For instance, the rigidity of chain of command and span of control will be considered.

In addition, corporate structures will be looked at in their strategic capacity, relevant to the issues of mergers and acquisitions and their effect on firm integration. 

Below are some goals and objectives for you to refer to after learning this section.

Goals for this section

  • To understand the importance of Organisational Structure
  • To appreciate different key concepts and what can impact Organisational Structure

Objectives for this section

To be able to:

  • Understand the differences between different models and how they influence the choice of organisational structure
  • Understand the different concepts falling under organisational structure
  • Identify the differences between different corporate structures and understand which situations they are suitable in
  • Comprehend how an organisational change, such as an M&A impacts structure and how it can be managed

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