CIMA E1 Syllabus D. Shape And Structure Of The Finance Function - Contemporary organisational structures - Notes ^{2 / 9}

Boundaryless structure

There is a general trend to becoming boundaryless – this means to minimise or even eliminate formality and chains of command to focus on speed and flexibility in fast changing environments. 

In boundaryless companies, employees, even though they do not have to be in the same room together, do not work in isolation. They are usually part of a large team that works on one of many projects.

There are 3 types of boundaryless organisations. They are:

Virtual organisations - Consists of individuals/teams working remotely. Typically such organisations exist entirely online, without physical premises.

Modular organisations - These organisations break manufacturing processes down into autonomous “modules”, Hollow which are then either brought together by the organisation itself, or outsourced.

Hollow organisations - After breaking activities down into core and noncore, core activities are kept in-house, while noncore activities are all outsourced.

Shamrock structure

These are largely driven by pressure to reduce personnel costs, there has been an increase in the use of part-time and temporary contracts of employment. 

This structure permits the buying in of services as needed, with consequent reductions in overhead costs. 

It is also known as “the flexible firm”.

Jobless structure

In this structure, organisations use a changing pool of freelance workers.

Output-focused structure

These structures focus on results rather than processes.

Flatter structure

In this structure, organisations have fewer layers enabling faster response times.

Horizontal structure

In this structure, organisations use multifunctional project teams and multi-skilling, providing flexibility.

‘Chunked structure‘ and ‘unglued structure'

This is where smaller and more flexible units are created within the overall structure.