Page 30 - E1 Integrated Workbook STUDENT 2018

Chapter 2

Structural dimensions

Given the many choices of structure, how should an organisation decide
upon which structure is most appropriate? Considerations include:

For example, a large organisation may be
Size more suited to a divisional/ matrix structure
with decentralised control.

For example, a small partnership may be
Organisation type more suited to an entrepreneurial or
functional structure with centralised control.

For example, an informal culture where
Level of culture and employees are given autonomy and are
formalisation empowered to make decisions may result in
the adoption of a divisional structure.

For example, organisations with a range of
Level of specialisation specialist products, markets or projects may

be more suited to a divisional or matrix
t t
For example, an entrepreneurial or
Environment functional structure may be suited to an
organisation in a stable, static environment.

For example, technological advances and
Technological change automation have, in some cases, resulted in

technology replacing middle and lower level
managers.

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