Business – 7.1 Organisational structure – Objectives and structure | e-Consult
7.1 Organisational structure – Objectives and structure (1 questions)
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Designing a structure for growth requires mechanisms that accommodate increased scale, new product lines, and expanded markets while preserving clarity and control.
- Divisional (or product‑based) structure:
- Each division operates as a semi‑autonomous unit with its own profit‑and‑loss responsibility.
- Facilitates expansion because new divisions can be added without disrupting existing operations.
- Encourages accountability and focus on specific market segments, driving performance as the firm grows.
- Matrix structure with dual reporting lines:
- Combines functional expertise with project or product focus, allowing resources to be shared across initiatives.
- Supports development by enabling employees to work on diverse projects, building skills and fostering innovation.
- Provides flexibility to re‑configure teams as the organisation scales, ensuring that growth does not create silos.
Both features promote scalability by balancing autonomy with coordination, ensuring that growth does not compromise strategic alignment or operational efficiency.