organisational structure
What is organisational structure?
Organisational structure refers to:
The levels of management
The division of responsibilities
How employees are linked and report to each other
It is usually shown using an organisational chart with clear hierarchy.
Bill’s business at present
Bill works alone
He is the owner and manager
There are no other employees
So, there is no need for an organisational structure
This is the simplest form of business organisation.
What happens if Bill’s business expands?
If Bill’s business grows, the organisational structure would change and become more complex:
Bill would need to employ more workers
Different roles would be created (e.g. shop assistant, supervisor)
Responsibilities would be shared and clearly defined
New levels of management might be added
An organisational chart would be needed to show:
Who reports to whom
Who is responsible for what