5CO01 – Organisatio
performance and cul
in
practice
,Organisational Structures – Definitions and Types (AC 1
❑ Definition of Organisational Structure
Organisational structure refers to the framework that dictates how job roles, decision-m
1
communication flow within an organisation.
❑ Common Organisational Structures
I. Functional Structure – Employees are grouped based on specialisation (e.g., H
IT).
II. Divisional Structure – The organisation is divided based on product lines, geo
customer groups.
III. Matrix Structure – Employees report to multiple managers, combining func
project-based reporting.
IV. Flat Structure – Few levels of management, encouraging autonomy and faste
making.
V. Hierarchical Structure – A traditional pyramid structure with clear authority levels
LEADERSHIP PRESENT
, The Divisional Structure (AC 1.1)
❑ What is a Divisional Structure?
Divisional structure separates an organisation into independent units or divisions, each resp
specific products, markets, or geographic locations.
❑ Reasons for a Divisional structure
1
I. Diverse product lines require independent management (e.g., Apple has separate d
iPhones, MacBooks, and Services).
II. Geographic expansion necessitates regional offices (e.g., McDonald's divisions
Asia, and North America).
III. Customer segmentation allows for targeted marketing and service delivery (e.g
banking services for retail and corporate customers
Advantages Disadvantages
➢ Focused on specific markets, products,
or geographies ➢ Can lead to duplication of resources
➢ Increases accountability by treating across divisions
divisions as profit centers ➢ Reduced coordination between divisions
➢ Enables quick decision-making due to can create competition
decentralisation LEADERSHIP PRESENT
performance and cul
in
practice
,Organisational Structures – Definitions and Types (AC 1
❑ Definition of Organisational Structure
Organisational structure refers to the framework that dictates how job roles, decision-m
1
communication flow within an organisation.
❑ Common Organisational Structures
I. Functional Structure – Employees are grouped based on specialisation (e.g., H
IT).
II. Divisional Structure – The organisation is divided based on product lines, geo
customer groups.
III. Matrix Structure – Employees report to multiple managers, combining func
project-based reporting.
IV. Flat Structure – Few levels of management, encouraging autonomy and faste
making.
V. Hierarchical Structure – A traditional pyramid structure with clear authority levels
LEADERSHIP PRESENT
, The Divisional Structure (AC 1.1)
❑ What is a Divisional Structure?
Divisional structure separates an organisation into independent units or divisions, each resp
specific products, markets, or geographic locations.
❑ Reasons for a Divisional structure
1
I. Diverse product lines require independent management (e.g., Apple has separate d
iPhones, MacBooks, and Services).
II. Geographic expansion necessitates regional offices (e.g., McDonald's divisions
Asia, and North America).
III. Customer segmentation allows for targeted marketing and service delivery (e.g
banking services for retail and corporate customers
Advantages Disadvantages
➢ Focused on specific markets, products,
or geographies ➢ Can lead to duplication of resources
➢ Increases accountability by treating across divisions
divisions as profit centers ➢ Reduced coordination between divisions
➢ Enables quick decision-making due to can create competition
decentralisation LEADERSHIP PRESENT
