Organisational structure is a diagram that shows which position ranks highest in terms of responsibility with the top regarded as the most responsible. There are three forms of organisational structure; hierarchal, flat and matrix, knowing which one to use will depend on the size of the business and the type of business for example a local restaurant with about five or more people will use a flat structure and a large construction company would use a matrix structure. I will discuss these three hierarchal structures in further detail below.
Hierarchical structure is normally pictured as a pyramid design with the top being the highest position of responsibility and authority. This type of structure has lots of levels and positions to it for example a business with a hierarchal structure would have a managing director who oversees everything and makes all the decisions at the top then below him they would have senior leaders who have a lot of responsibility and authority but not more than the managing director, senior leaders also pass on information to middle management and make sure the managing directors decisions gets done. Middle management is positioned in the middle or in this case second lowest of the hierarchical structure above staff and they ensure that the orders sent down by senior leaders are followed. At the bottom of the pyramid is staff they don’t have a lot of responsibilities due to the fact they are not responsible for any sort of management and just follow orders given by higher ups of the hierarchal structure. With the amount of levels I have just discussed in this organisation structure just shows how long the chain of command and how much information gets passed through this chain. This structure also show how narrow the span of control is due to how divided the structure is. Effective communication will be difficult to perform in this structure as