Identify the Main Factors Shaping the Structure of an Organisation Essay

The structure of an organisation refers to the pattern of relationships that exists between different parts of the business and between the different people who work within it. Organisations are structured in a variety of ways, dependant on their objectives and culture. The wrong organisation structure will hinder the success of the business. Internal factors such as size, product and skills of the workforce influence the organizational structure. As a business expands the chain of command will lengthen and the spans of control will widen. The higher the level of skill each employee has the more the business will make use of the matrix structure to maximize these skills across the organization. A Matrix structure organisation contains teams of people created from various sections of the business. These teams will be created for the purposes of a specific project and will be led by a project manager. Often the team will only exist for the duration of the project and matrix structures are usually deployed to develop new products and services. The advantages of a matrix include – Individuals can be chosen according to the needs of the project. – The use of a project team which is dynamic and able to view problems in a different way as specialists have been brought together in a new environment. – Project managers are directly responsible for completing the project within a specific deadline and budget. In adopting a Matrix structure could entail some disadvantages which may include – A conflict of loyalty between line managers and project managers over the allocation of resources. If teams have a lot of independence can be difficult to monitor. – Costs can be increased if more managers (ie project managers) are created through the use of project teams. Organisational structures should aim to maximize the efficiency and success of the Organisation. An effective organisational structure will facilitate working relationships between various sections of the organisation. It will retain order and command whilst promoting flexibility and creativity