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Business Steve ­ Notes Emma Rudd BMA

People and Organisations

Organisational Structures
What is an Organisational Structure?
An organisational structure is the way in which a business is arranged to carry out its
activities. It may be shown in an organisational chart that sets out
The routes by which communication…

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Business Steve ­ Notes Emma Rudd BMA

programmes over recent years. Many businesses have removed middle managers from
their organisational structures.

The increasing level of competition in international markets, has forced UK firms to reduce
their costs. Delayering the organisational structure is one way in which costs have been

Page 3

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Business Steve ­ Notes Emma Rudd BMA

Organisational Structures
Businesses can adopt a number of structures according to the size of the
organisation, the environment it operates in and the personal preferences of the
owners and senior managers.

Formal or Traditional Hierarchy
This structure gives all employees a clearly defined…

Page 4

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Business Steve ­ Notes Emma Rudd BMA

organisation. So, a project manager looking to develop a new product may be able
to call on IT and design skills from relatively junior employees elsewhere in the

Matrix structures focus on the task in hand. Launching a new product, opening new…

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Business Steve ­ Notes Emma Rudd BMA

are taken at the center, little use is made of hierarchies and the organisation it
relatively `flat'.

However there are distinct drawbacks to the entrepreneurial structure. Its
effectiveness depends on two factors
The quality of management and decision making by the `core' employees.…

Page 6

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Business Steve ­ Notes Emma Rudd BMA

products, it may adopt a matrix structure to minimise bureaucracy and to allow
teams to carry out the necessary research and development, and market research.
On the other hand, an organisation which places importance on tradition (and wants
to appear conventional) may be…


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