Business Studies Part I
Business Studies Part II

Organisation Structure

Organisational Structure: Definition
The organisational structure can be defined as the framework within which managerial and operating tasks are performed.The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources. It allows correlation and coordination among human, physical  and financial resources  and this enables a business enterprise to accomplish desired goals. The organisation structure of a firm is shown in an organisation chart.

The span of management, to a large extent gives shape to the organisational structure. Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure.

A proper organisation structure is essential to ensure a smooth flow of communication and better control over the operations of a business enterprise.

An organisation structure provides the framework which enables the enterprise to function as an integrated unit by regulating and coordinating the responsibilities of individuals and departments. Let us try and understand this through an example.

For example: Smita opened her own travel agency, sometime back.  She assigned work to her three employees in the following manner ‘Neha, you are incharge of air plane, train and bus reservations.’ ‘Karan, you will take care of accommodation booking’ 

Span of management is the number of subordinates under a superior or we can say, it means how many employees can be effectively managed by a superior. The span of management, to a large extent gives shape to the organisational structure, e.q., if the number of subordinates under a superior keep increasing when we move downward then the shape of the organisational structure will be as follows:

The organisational structure can be defined as the framework within which managerial and operating tasks are performed.