Organisational Structure Definition

An organisation’s structure defines the way in which it operates and how its different parts work together. It can be thought of as the ‘skeleton’ of the organisation, providing a framework within which it can function.

There are many different types of organisational structures that businesses can choose from, each with its own advantages and disadvantages. The most appropriate structure for a business will depend on a number of factors, including its size, industry and objectives.

The most common type of organisational structure is the hierarchical or pyramid structure, in which authority and responsibility are cascaded down from the top of the organisation to the bottom. This type of structure is typically used by large organisations with complex operations.

Another common type of organisational structure is functional, which groups together employees with similar skills and knowledge. This can make communication and decision-making more efficient, but can also lead to silos within the organisation.

A less common type of organisational structure is divisional, which splits the organisation into smaller divisions based on products, geography or markets. This can help to improve efficiency and accountability, but can also create duplication and confusion if not managed properly.