Management Structure describes the ways in which parts of an organisation are formally arranged to achieve objectives. An LSOs’ structure is usually represented in an organisational chart. The most typically arrangement is a Management Hierarchy, which the arrangement that provides increasing authority at higher levels of the hierarchy.
A Management Structure within an LSO provides:
A Traditional Hierarchical Organisation is centralised and with a rigid, multiple layered structure. An autocratic management style or a similar style is typically used in this structure. Power is not shared amongst the employees, and rests with the higher levels of management. The communication and delegation of this structure is top-down from management to the employees.
A Flatter Structure is decentralized and has a more flexible structure. This structure is more people-centered using a laissez-faire management style or a similar style. Communication is determined by consensus and delegation is determined by agreement. There is equal power-sharing allows decision-making power
The Functional structure involves grouping employees together according to the tasks they will perform. It can also be referred to as the task structure.
Divisional Structure groups employees together according to divisions that may be geographical, or customer, product or process focused. A Divisional Structure can be further broken down into a Product Structure, Geographic Structure, Customer-Based Structure and Process Structure.
A Product Structure groups employees together due to the products or goods in which they produce.
A Geographic Structure organizes employees and decision-making based on the geographical trading patterns and regional business activities of an organisation.
A Customer-Based Structure involves departments based on the types of customers dealt with by a group of employees.
A Process Structure involves organising employees based on the tasks that the employees perform.
A Matrix Structure combines specialization by function and division in the structure. This involves specialization by project while each member of staff remains part of a department based on.
The Network Structure functions are outsourced to other organisations. The core organisation exerts control via contracts.
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