Organisational Structures

• Functional structures


  Where the employees of an organisation are divided into groups based on the skills that they have, e.g. marketing, finance, research and development
• Functional structures


  • Employees work together in teams according to their skills set and specialisms – these are often called departments or functions
  • Employees in each function/department report to one function/department manager
  • Each function/department manager is responsible for the management of his/her employees
  • Function/department managers coordinate with a higher authority layer of management to ensure business operation is effective
• Geographical structures


  Where an organisation has offices in various locations – can be single offices or business units. Offices/business units report into a regional manager/executive
• Geographical structures


  • Larger hierarchical organisations operating on a global/nationwide scale
  • Organisations using this structure will locate production, retail and other key functions of their business in regions where supplies, resources and customers are most favourable. These are called divisions or regional areas
  • Regional Mangers coordinate business activities in each division/regional area and report to the head office management team (top management) which is the central office to deal with the 'big stuff'
  • Each division/regional area will have its own set of functional areas that specialise to that region of operations
• Impact on individual career development - Functional structures

  • Working with others in the same discipline/skill you get the opportunity to become a specialist in that area
  • There are clear promotion prospects in your field, e.g. you start as an accounts clerk and then can move upwards to manager's account
  • With a lot of experience in your field, learning from those around you, you could build up enough skills, experience and knowledge in your area that you could set up your own business rather than being an employee
  • Whilst you are a specialist in your area and you are learning from other people in the same field, you could become quite insular and unable to see the bigger picture of what is best for the organisation. You could develop a mindset that what you do in the organisation is the most important which may have a detrimental effect on your career development
• Impact on individual career development - Geographical structures


  • It may not always be easy for communication between employee and employer. Does your supervisor in another area even know who you are so may not be able to promote yourself. You will need to be proactive to make sure that regional/head office know who you are
  • It can encourage collaboration with employees in all other departments in the one location. This allows you to pick up skills from other employees. It also allows an employee the opportunity to work in a different department, a creative accounts person could get opportunity to work in marketing/advertising
  • You may get the opportunity to become well known in that location and you can boost your own knowledge of the geographical location. You can become an expert on the client's profile in that location
  • If the regional offices are nowhere near you then you miss out on opportunities. This could be in first or third world countries depending on the business