Why Have A Structure?
Why Have A Structure?
Board of Directors
Advantages Disadvantages
• Specialisation – each • Closed communication
department focuses on could lead to lack
its own work of focus
• Departments can
• Accountability –
become resistant
someone is responsible to change
for the section • Coordination
• Clarity – know your and may take too long
others’ roles • Gap between top and
bottom
An Example of Organisation
by Product/Activity
Hewlett Packard
• By Process:
Similar to structuring by function