The organisational structure is the way in which management is organised. The size of the business and the business environment are some factors that affect the organisational structure. There is not one structure that fits every business. If I were to run a business I would choose a fairly small organisation, which is looking to grow. I would like to run my business as a partnership, with people who I trust.
I would use the formal hierarchy as my organisational structure. This is suited to a role culture, where the job is important. The individual is fitted to the job and so the whole organisation is efficient. Each person within an organisation has clear roles and responsibilities, which they cannot exceed. This culture would help co-ordinate activity. If you want something done, then you know who to go to.
A formal hierarchy clearly marks authority distinctions. This would help maintain control and discipline, by making sure the employees know who is above them in the hierarchy.
There are clear lines of accountability, which means individuals are named.
My organisational structure would divide into functional areas such as marketing, production and finance. Within each department there would be a fairly narrow span of control. This is useful as there would be effective supervision and less discretion and therefore less chance of mistakes. However, a narrow span of control is not a good idea as decision-making can be slow. There would be bad communication and this can cause failure to share ideas. Also, too many layers of hierarchy can emphasise authority and therefore demotivate young, ambitious employees.
I believe employee opinion is important and so I would use a democratic style of management, for example by using quality circles. This can help improve the business as a whole and the members of...