Organisational Structure – basics
The article below looks at how basically companies can be organised. by Rhys Gregory
The Hierarchial Management Structure
A hierarchical management system is the way in which a business organised and structured. It contains a series of different layers usually with the managing director at the top, it is then usually broken down into different departments, their managers and subordinates. There are usually two different ways in which you find them structured, some businesses may have all tall structure which means managers have a smaller span of control, this is a good way as you have more control over your subordinates. Some businesses adopt the approach of having a flatter structure within their business with a wider span of control, less managers having more workers to control, it’s a good way to save money on managers and maybe used in a factory where a manager would have lots of workers below him but would find it harder to manage them.
Business Structure by Department
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A business is broken down into different departments, this is because it helps the business to run better, each department in charge of a certain set of tasks to carry out, it makes it easier to get things done whereby you know which department to contact about particular things (you can see this working through the chain of command). There are four main departments within a business; you have the Finance department who’s in charge of the businesses finances such as paying employees and sending out invoices. Human resources deals with recruiting staff (finding the right people for the job), they also deal with training of new and current staff. The marketing department’s job is to find out the needs and wants of their target audience and how to meet them. They also deal with promotion and getting the right product to the right customer, at the right place + time and at the right price. Production department deals with the research and development of products. New technologies making manufacturing easier, making the product better. They are also in charge of quality control and making sure the product is produced at the highest quality possible, they also deal with looking for ways to speed up production and lower costs of production.
