Business – 7.1 Organisational structure – Objectives and structure | e-Consult
7.1 Organisational structure – Objectives and structure (1 questions)
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The primary purpose of an organisational structure is to provide a framework that defines how activities such as planning, decision‑making, communication, and control are coordinated across the organisation. It clarifies roles, responsibilities, and reporting lines, enabling efficient allocation of resources and achievement of strategic objectives.
Flexibility enhances this purpose by allowing the structure to adapt quickly to external and internal changes. Flexible structures (e.g., matrix or network forms) enable:
- Rapid re‑allocation of staff and resources to respond to market shifts.
- Decentralised decision‑making, giving frontline managers the authority to act swiftly.
- Cross‑functional collaboration, which fosters innovation and improves problem‑solving.
Consequently, a flexible structure ensures the business can meet evolving customer demands, regulatory changes, and competitive pressures without the delays inherent in rigid hierarchies.