Page 211 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 11: Structural Implementation

should then be implemented by work teams at all levels of management. Work-team objectives Notes
must include:

1. Involving all levels of staff in consultation
2. Designing and implementing a process to develop-goals and objectives for the organisation
and unit; a strategic process for the next five to ten years
3. Defining and clarifying organisational structures and identifying functions, customers,
and service delivery models

4. Identifying changes and staged approaches needed to move from the current situation to
what will be required over the next three to five years

5. Identifying and recommending priorities for policy and programme development
6. Incorporating goals for expenditure reduction, service quality improvement, workforce
management, accountability, technology, and business process improvement.
11.4 Types of Organisational Structures

There are seven basic types of organisational structures:
1. Simple structure
2. Functional structure

3. Divisional structure
4. SBU structure
5. Matrix structure
6. Network structure

7. Virtual structure
Let us understand each of them briefly.
1. Simple Structure: In this structure, the owner-manager controls all activities and makes
all the decisions. This structure may be appropriate for small and young organisations.
Coordination of tasks is done through direct supervision. There is little specialization of
tasks, few rules and regulations and communication is informal.
Figure 11.1: Simple Structure

Owner-Manager

Employees

Example: Small businesses like mom and pop stores, small restaurants etc have a
simple organisation structure.

2. Functional Structure: Functional structures are grouped based on major functions
performed. Each function is led by a functional specialist. Functional structures are formed
in organisations in which there is a single or closely related products or services.

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