Organisational Structures
- Created by: tanja soulsby
- Created on: 08-06-17 11:57
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- Organisational Structures
- Functional Structures
- Businesses can be organised into several departments which group jobs together by function
- Main 4 departments are:
- Finance
- Marketing
- Operations
- HR
- Each function can work in its own area of expertise which can make implementing strategy simpler
- Could mean each department has its own culture and focuses on its own priorities
- If communication between departments not good, will be hard to coordinate strategy
- Product-based Structures
- In a business producing lots of different products, each group of products can be run almost as a separate business
- Each product division has its own:
- Director
- Finance team
- Marketing team etc. ... ????
- Each product division has its own:
- Ideal structure for implementing certain strategies
- E.g. business might want to grow market share of one product whilst keeping another product's market steady
- May be unnecessary duplication of roles
- E.g. Instead of each dept. having own research team, might be more efficient having just 1 R&D for whole company
- In a business producing lots of different products, each group of products can be run almost as a separate business
- Regional Structures
- Based on location
- Business might have branches all over the place, grouped in regional divisions that run themselves
- Global company could have HQ on each continent, which oversee national divisions
- Tends to suit a market development strategy where the business is expanding into new geographical markets
- If different market demands in different locations, control can be decentralised so each division can run itself independently and adapt to local needs
- Matrix Structures
- Organise staff by 2 different criteria
- Project
- Each project team has workers from different functions
- Function
- Each project team has workers from different functions
- Function
- Ensures staff are pursuing clearly defined objectives
- Encourages departments to build relationships with one another
- Project
- Could lead to conflict - e.g. managers having different ideas how strategy should be implemented
- Organise staff by 2 different criteria
- Functional Structures
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