Business can adopt а number of structures according to the size of the organisation, the environment in which it operates and the personal preferences of the owners and senior managers.
There are many ways in which the Organisational structure of а company can affect its performance, good and bad, internal and external.
The size of the business – As the scale of the business increases, an entrepreneurial structure, for example, becomes unsuitable. As the business grows further, the chain of command is likely to be length, encouraging the removal of some layers of hierarchy and broader spans of control.
The Nature of the Product – If the firm supplies а diverse range of products, it may organise itself traditionally – perhaps in the form of divisions reporting to the board of directors. The Rank Organisation operates in this way with key areas of the business, such as film services and leisure activities such as the Hard Rock Cafes, having some degree of independence
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