. When you change an organisational structure, it threatens people's status. Status is one of the prime drivers of the brain. If you perceive you are losing status, this can be very stressful.

. Organisations require different structures and these structures have a bearing on employees' attitudes and behaviour, ie an organisational structure defines how job tasks are formally divided, grouped and coordinated.

. There are 6 key elements and related questions that managers need to address when they design their organisation's structure:

i) workspace specialization

ii) departmentalisation

iii) chain of command

iv) span of control

v) centralization and decentralization

vi) formalization

Six key questions for designing organisational structure

. To what degree can tasks be subdivided into separate jobs? (work specialization)

. On what basis will jobs be grouped together? (departmentalisation)

. To whom do individuals and groups report? (chain of command)

. How many individuals can a manager efficiently and effectively direct? (span of control)

. Where does decision-making authority lie? (centralization and decentralization)

. To what degree will the rules and regulations be used to direct staff? (formalization)

. Organisational structures can be categorised as 6 basic types

i) simple structure

ii) bureaucracy

iii) matrix structure

iv) team

v) virtual/networked

vi) boundary-less

Six Key Elements of Organisational Structure


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