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Introduction

One could argue that no other topic has undergone as much change in the past decade as that of organising and organisational structure. Traditional designs are being questioned and re-evaluated in the search for designs that match changing environments and strategic directions.

Organising . Organising involves determining the work to be completed in order to achieve the organisation's goals, appropriately dividing the work between staff and setting up the mechanisms to coordinate activities. You will remember that organising is one of the four functions of management. Organising in its broadest sense is about the process of making the organisation's structure appropriate to its objectives, strategy, resources and environment.

Organisational structure. Organisational structure represents the formal channels through which the company is managed and depends greatly on the mission and strategy. Obviously, specific organisational designs vary from organisation to organisation.

Organisational structure is the degree of complexity, formalisation and centralisation in an organisation. An organisation's structure determines what jobs employees do, how they are grouped and, therefore, how they interact with each other. It determines the number of levels in the organisation and the control structures.

Organisational design. Organisational design is the construction or change of an organisation's structure - the process of developing an organisational structure. Over the last decade there has been a broad trend towards more 'organic' designs for organisations. These designs have decentralised authority and enabled organisations to respond more readily to change than did the 'mechanistic' types of organisations, which were dependent on centralised authority and layers of bureaucracy.

In this chapter we will initially concentrate on presenting some background knowledge of organisational designs. We will discuss how to best divide work among employees. We will also look at the types of formal structures and approaches that enable a structure to be fitted to the organisation's strategies, technology, environment and people.

In addition, we will consider the contemporary approach to the design of organisations. This chapter also serves as an excellent introduction to our next chapters on organisational culture and the management of organisational change.

Initially, we will concentrate on some background knowledge of organisational designs. By way of introduction to the topic, read Chapter 9 of your text.

In your text

Bartol, K M; Martin, D C; Tein, M H and Matthews, G W (2001), Chapter 9.

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