Skip to main content

3 types of organisational structures



Hello readers, I hope you all are good. Today I will be writing about 3 types of organisational structures. The types I will be writing are functional structure, matrix structure and the entrepreneur structure.

An organisation could be defined as a group of people that have the same goal. This goal is defined by the company they work for. When two or more people come together to achieve the same results, an organisation has been formed. Organisations have been around for years. Its types are discussed below:

Functional structure

The functional structure is usually represented with a triangle. The chief executive officer is always at the top of triangle with the reporting line of their surbodinates flowing beneath vertically.  This structure is the mostly used one.

Employees are grouped according to the function they perform. For example the people that carry out finance tasks will be grouped in the same department, they will be to reporting to the head of department (finance manager) whom, in turn will report to the chief executive officer. 

Furthermore, employees could also be grouped by the product they make, they report to the product manager whom in turn reports to the chief executive officer. Employees could also be grouped by geographical location as most companies have branches in different regions.

An organisation whose structure is functional can be tall or flat, with the tall having many levels and the flat having fewer levels.

Matrix structure

This structure was formulated due to challenges faced by the companies that used  the functional organisation structure. Instead of an employee  reporting to one manager which occurs with the functional structure, he/she reports to two or more managers. For example a human resource staff will be reporting to the human resource manager as well as a finance manager whom will  be involved when employing a finance staff.

Entrepreneur structure

This type of structure is used by smaller companies like a sole-proprietorship business or a company with few partners. The decision on what work to be done, how the work should be done and whom does the job is made the owner(s) of business or the people that controls the business. The structure is simple, informal and can be changed on a daily basis. Employees could be told to carry two or more tasks. For example, someone that carries  out receptionist duties could also be told to carry out cooking duties in a bed and breakfast accommodation business. The structure is good for small businesses, however, when the business starts growing it will be challenging to use.

Make sure your business is halal. Everything should be done seeking the pleasure of Allah. Part of seeking the pleasure means hoping for a reward from Him in this life and the Hereafter. Everything happens according to the will of Allah (you have freewill, therefore, you are responsible for your actions).

Halal means anything lawful Islamically.

Alhamdulillah (Praise be to Allah). May Allah send peace and blessings to Prophet Muhammed (P.B.U.H). Thank you for reading this article. Like this page on facebook. Keep reading this blog regularly. Cheers!


Comments

Post a Comment

Popular posts from this blog

How can your strategy be successful

Hello readers, today I will be telling you about ways to make your strategy a successful one. The scope is your strategy must be fit, in other words your strategy must be consistent with the environment your business operates in. When I say environment, I am talking about both external and internal environments. Thus, you must understand the political, economic, socio-cultural, technological and legal environments your business operates in. The environmental protection that affects your organisation must also influence you when formulating your strategy. Therefore, PESTEL analysis can be used to understand the external environment of your business. The internal environment also needs to be understood, as your strategy must also be in alignment with the internal environment. Understanding your internal environment will help you know the resources your business has, the capabilities of your business as well as the structure and system. The SWOT analysis can be used to help y...
Post a Comment
Read more

How to Make Money from Gold

We used to operate in a gold standard system in the past, it is common knowledge that we presently operate in a dollar based system.  A system where each country measures the value of its currency against the dollar for the dollar based system and the gold for the gold standard system. The gold used to be a yardstick for measuring the value of a currency, although it is no longer used to measure the value of currencies these days, it has maintained it's prestigious value. Gold a very valuable metal, its prices depreciates at times and appreciates other times, but looking at its trend over 100 years, the prices have always appreciated over 10 years or above. From 2006 to 2015, the gold price per ounce appreciated by 200%, while from 2002 to 2015 it appreciated by 300%. So Long term investors go ahead and purchase gold. You must always pay zakat on the value of your gold when it reaches the nisab which is 87.48 grammes. However, you can give charity (sadaqa) from it. Alla...
Post a Comment
Read more

The Istikharah Prayer

Hello readers , today I will be telling you about the Istikharah prayer. It is a prayer of guidance. When you want to make a major decision in your life, it is best you seek Allah's guidance. You should always pray to Allah to guide you through the right path in your daily activities. Istikharah prayer is recommended for a major decision such as getting married, starting a business and others. How do you perform the Istikhara prayer? Make two rakats (Nafila). During your first rakat, after reciting Surat Fatiha recite Surat Ikhlas, during your second rakat  after reciting Surat Fatiha recite Surat Kaafirun. After saying Asalam Alaykum Waramatullahi to the right and then the left recite this: "Allahumma inni astakhiruka bi-ilmika wa astaqdiruka biqudra-tika, wa as'aluka min fadlikal Azeemi fainnaka taqdiru wa la aqdiru, wa ta'lamu wa la a'alamu, wa Anta Allamul-Ghuyubi, Allahum-ma in kunta ta'lamu anna  [then mention the thing to be decided] khairun ...
Post a Comment
Read more