Structural considerations

To a strategist the organisation

structure is much more than a chart containing the hierarchical order.

What is Structure?
An organisation structure is the arrangement of tasks

and sub-tasks required to implement a strategy.

The diagrammatical representation of structure could

be an organisation chart,but a chart shows only the SKELETON.

The FLESH AND BLOOD that makes the

organisation alive is the several administrative mechanisms,such as controls that support the structure.

3 key components of organisation structure:Identifies the formal reporting relationship. Grouping of individuals and departments.

Design of systems.

Vertical structures
Specialised tasks Hierarchy of authority

Rules and regulations

Vertical communication and formal reporting systems

Centralised decision making

Emphasis on efficiency

Horizontal structures
Shared tasks Flexible authority

Few rules and regulations

Horizontal communication and sharing of information

Decentralised decision making

Emphasis on learning

Structure and strategy

WHY IS STRUCTURAL IMPLEMENTATION NEEDED?

STRATEGIC PLAN IS IMPLEMENTED

PERFORMANCE IMPROVES

NEW STRATEGIES PUT IN PLACE

STRUCTURE IS CHANGED

IMPLEMENTATION OF NEW STRATEGIES

EFFECTIVENESS IS REDUCED

MISMATCH OCCURS

PERFORMANCE DECLINES

ENVIRONMENT,STRATEGY,STRUCTURE AND EFFECTIVENESS

TYPES OF ORGANISATIONAL STRUCTURES

ENTREPRENEURAL STRUCTURE

FUNCTIONAL STRUCTURE

DIVISIONAL STRUCTURE

SBU STRUCTURE

MATRIX STRUCTURE

NETWORK STRUCTURE

OTHER TYPES OF STRUCTURES

STRUCTURES FOR BUSINESS STRATEGIES

ORGANISATION DESIGN FOR ATTAINING COST LEADERSHIP

ORGANISATION DESIGN FOR ATTAINING DIFFERENTIATION

STRUCTURES FOR CORPORATE STRATEGIES

STRUCTURES FOR INTEGRATION STRATEGIES STRUCTURES FOR DIVERSIFICATION STRATEGIES

STRUCTURES FOR INTERNATIONALISATION STRATEGIES

STRUCTURES FOR COOPERATIVE STRATEGIES

STRUCTURES FOR DIGITALISATION STRATEGIES

THANK YOU
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