Organisational structure refers to the levels of management and division of responsibilities within a business, which could be presented in an organisational chart. For simpler businesses in which the owner employs only himself, there is no need for an organisational structure. However, if the business expands and employs other people, an organisational structure is needed. Any operating organization should have its own structure in order to operate efficiently. For an organization, the organizational structure is a hierarchy of people and its functions.
What is the purpose of an organisational structure?
Organizational structures help everyone know who does what. To have an efficient and properly …show more content…
Each layer of management often develops its own rules and procedures, which means that employees who work several layers down in the company may have many rules and procedures to follow. This can add to costs, as some functions are performed by more than one person.
Employees
Because managers in a tall organization only have a small number of employees to supervise, they are able to supervise more closely and spend more time on training employees. There are also very clear lines of career progression and promotion for employees. However, employee satisfaction may be lower in a tall organization because of the many layers of organisation and firm rules, and because employees have fewer opportunities to take on responsibility. …show more content…
Decision making is often slowed down because approval may be needed by many different people, and it can be difficult for managers to access executives without going through a long line of management. Because communication usually moves upward through the management chain, managers and employees in parallel groups may have difficulty communicating directly.
Adidas organisational structure
This type of structure combines the traditional departments seen in functional structures with project teams. In a matrix structure, individuals work across teams and projects as well as within their own department or function.
For example, a project or task team established to develop a new product might include design specialists as well as those with marketing, financial, personnel and production skills.
This can be clearly seen from adidas matrix structure which shows three projects ( mi adidas, adidas original and adidas performance) and how they all have connections to the different functional departments.
These teams can be temporary or permanent depending on the tasks they are asked to complete. Each team member can find himself/herself with two managers - their normal functional manager as well as the team leader of the project.
MARKETING
OPERATION
FINANCE