From Organisations and the Business Environment, Second edition
After studying this chapter, students should be able to describe:
what is meant by organisation structure;
management issues in organisation structure;
the main factors that influence the structural design;
centralisation, decentralisation, span of control, unity of command and delegation;
the flexible firm;
the advantages and disadvantages of different types of organisation structure.
21.1 Why do we have structures?
In order to achieve their goals and objectives, organisations need to arrange the work into manageable segments and align the segments so that individual efforts are co-ordinated for optimum organisational effectiveness. These alignments form the organisation structure and this chapter describes various models of structure, and examines the advantages and disadvantages of adopting particular structures.
21.2 What is structure?
Organisation structures have been the subject of much interest by management scholars over the years, and, as we saw in Chapter 1, Taylor  described the need for structures of control while Max Weber s view of bureaucracies  called for authority structures . The rapid growth of organisations and the increasing complexity and their environments stimulated the contingency school of management theory which studied the relationship of the environment and structure. The contingency  approach concludes that organisations are most effective when their structures are appropriately designed to match the relationships of the particular nature of the business, the external environmental factors, and the market conditions.
According to Henry Minzberg,  an organisation s structure is the sum total of the ways in...
Products & Services
Topics of Interest
Learning objectives After studying this chapter, students should be able to describe: the things that influence activity inside an organisation; the nature of power, influence,...
Chapter List Chapter 1: Organisations and Organisational Theories Chapter 2: Organisational and Business Objectives Chapter 3: Non-Incorporated Organisations Chapter 4: Limited Companies...
Learning objectives After studying this chapter, students should be able to describe: the external environmental factors that can influence change; the motivations for change within...
What is Management? One definition is: 'The effective use of resources in the pursuit of organisational goals.' 'Effective' implies achieving a balance between the risk of being in business...
Introduction Change is one of the great certainties of business life, and how well an organisation responds is a measure of its agility. Organisations today find themselves increasingly challenged...