Good morning, everyone. Today, we are going to look at something that lies at the heart of how a business operates — its organisational structure.
Now, what exactly is an organisational structure? Simply put, it is how a business arranges its people, roles, and responsibilities. It shows who reports to whom, how decisions are made, and how information flows through the company. Think of it as a business’s internal map. Without a structure, the business would be disorganised, and tasks would overlap or get missed.
For example, imagine a school with no structure — no headteacher, no departments, and no subject teachers. No one would know who to ask for help or who is responsible for what. The same applies to businesses. A clear structure helps everyone understand their roles and how their work contributes to the company’s goals.
Let’s now talk about the purpose of having an organisational structure. The main goal is to help the business achieve its short-term and long-term objectives effectively. A good structure clarifies who is in charge, improves communication, encourages coordination between departments, and helps managers evaluate performance.
For instance, a massive company like Unilever, which sells hundreds of products around the world, needs a complex structure to handle all its operations efficiently. On the other hand, a small local business or start-up might use a flat structure, where communication is quick and decisions can be made fast. So, the right structure depends on the size and needs of the business.
Now, let’s look at what makes an organisational structure effective. There are four main attributes you need to know.
The first one is flexibility. A good structure should be able to adapt when the business environment changes. For example, when technology changes or when customer preferences shift, the company should not get stuck. Tech companies like Google are known for having flexible and team-based structures that allow them to innovate quickly and respond fast to new ideas.
The second attribute is meeting the needs of the business. The structure must fit the company’s strategy. For example, a business that wants to keep costs low might choose a centralised structure where decisions are tightly controlled to prevent waste. But a business that focuses on creativity and product design might prefer a decentralised structure that gives employees more freedom to make decisions. A brand like Chanel, for example, maintains a functional structure so it can control product quality and protect its brand image.
The third attribute is allowing for growth and development. As a business expands, its structure must grow with it. At the beginning, it might have only one manager and a few employees, but later, as new products or markets are added, the structure might need to change. For example, a company operating in one country may start with a functional structure, but when it expands globally, it might adopt a divisional structure, grouping operations by product or region.
The fourth and final attribute is encouraging intrapreneurship. Now, this is an interesting concept. Intrapreneurship means acting like an entrepreneur within an existing business. It is when employees are given freedom to create new ideas or projects inside the company. A great example is 3M, the company that created Post-it Notes. They encourage employees to spend some of their time developing their own ideas. This is only possible in a structure that promotes innovation and teamwork.
So, as you can see, the relationship between organisational structure and business objectives is very strong. The structure must support what the business is trying to achieve, whether that is growth, cost control, or innovation. A business with a poor structure will struggle to meet its goals, while a business with a well-designed one can grow, adapt, and succeed in the l
