Developing An Organisational Structure

From the previous article on the benefits of an organisational structure, we realised that most enterprises lack technical competencies to develop them and even when do, they may not be very appropriate to deliver the expected businesses. From our previous article, you will note that our focus was an “appropriate” and not right organisational structure. There is nothing like the right one against the wrong ones. Each type of structure has advantages and disadvantages. This article is aimed as supporting you and your organisation to develop a structure that will address your goals.

What is an effective organisational structure? An effective organisational structure has the following elements.

  • Establishes and enhances cohesion between employees and top management
  • Supports effective communication by allowing easy and quick flow of information.
  • Ensures effective and efficient work processes
  • Upholds the organisational culture

From the above, it is therefore worth noting that as you develop an organisational structure, you must bear in mind these three critical elements;

  • Take into consideration all the four key elements of an effective structure mentioned above.
  • Link and align the elements to one another.
  • Align the organisational strategy to culture and then the structure.

When the above fundamentals have been put into consideration, one should then identify which model to apply. The different models are;

  • Functional structures: These are structured along departments.

functional OS

  • Geographical structures: These are structured along geographical areas.

geographical OS

  • Product –focused structures: These are structured along products offered by the company.

product focused OS

  • Market-focused structures: These are structured along the different customer segments.

market focused OS

  • Matrix structures: This is a mix of the above structures.

matrix OS

Based on the different structures above, it is clear that in most cases, no one model is ideal for most organisations. As such, different organisations develop hybrid structures to take advantage of the different structures within their contexts. Taking on a hybrid structure enables an organisation to minimise redundancy and duplication of roles thus enhancing efficiency.

We can conclude by saying that Organisational structures, like many others aspects of business have continued and are still expected to evolve as business environments and expectations from employees continue to change.

By Brian Ahabwe Kakuru

Brian Ahabwe KakuruBrian is the Managing Director at BLEGSCOPE®, and has 10+ years of management consultancy experience notably in the finance & banking industry, MSMEs, FMCG companies and in the service industry. You can follow him on twitter >> @BrianAhabweK

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