ACCA SBL Syllabus H. Innovation, Performance Excellence & Change Management - Types of Structure - Notes ^{1 / 9}

3 Aspects:

1. Organisation Structure

2. Managing change

3. Intended and Emerging strategy

Option 1: Entrepreneurial Organisation

This works best in the early stages of a firm. 

As it grows it may become inefficient to stay like this

(in fact these options are ordered in life-cycle order)

• Entrepreneur takes all the big decisions. No delegation

• No formal management structure

• Simple processes. Small number of products probably

Option 2: Functional Organisation

Each function (production, marketing, finance etc) has its own management and staff

Option 3: Divisional Organisation

As different product-markets appear, this structure may become most appropriate

A division is simply an area of operations (geography, product or customer)

Head office delegates authority and responsibility to divisional management

Option 4: Matrix Organisation

Where different functions need to work closely together, so horizontal relationships become very important with dual command

• Project Managers: In charge of individuals across functions

• Functional Managers: Still in charge of their function

The matrix structure should:

1. Encourage communication

2. Focus on getting the job done (not defending own position)