Organisation structure is an act to determine the frame work of an organisation in view of the determined targets of any institution. It is a basic framework within which the manager’s decision-making behaviour takes place. Structure basically deals with the relationships. The system of job positions, roles assigned to these positions and specifying authority, responsibility, and task of every position is known as organisation structure. In order to achieve the desired goals, sound and effective organisational structure is necessary. Organisation structure shows the authority and responsibility relationship and also clarifies who reports to whom.
Organisation structure is the pattern of relationships among various components or parts of the organisation.
Definition of Organisational Structure
According to Hurley, “Organisation structure is a pattern of relationship among the various positions in a firm and among the various people occupying the positions.”
In the words of Newman, “Organisation structure deals with the overall organisational arrangements in an enterprise.”
Objectives of Organisational Structure
The three main objectives of Organisational Structure are:
1. To develop coordination among the different activities performed by the various departments in the enterprise.
2. To avoid duplication of the efforts at the time of execution of the necessary activities.
3. To execute all necessary activities and undue activity avoided.
Considerations for Designing Organisational Structure
1. Delegation of Authority: Before designing the organisation structure it is necessary to analyze the fact that how much authority is required to be delegated among the employees. It is necessary to know the requisite authorities, which are to be delegated to the mangers for the purpose of the decision of organisation structure.
2. Job Design: Job design should be prepare in such a manner, that the tasks of every job should be clearly defined.
3. Grouping of Identical Job: The identical jobs should be grouped together and should be assigned to the same department. This grouping is performed for ensuring coordination between the jobs and the managers.