E-Book, Englisch, 34 Seiten
ISBN: 978-3-668-93268-5
Verlag: GRIN Verlag
Format: PDF
Kopierschutz: Kein
The organisational structure of any company can be understood as a vehicle that depicts the activities and connections of various divisions, business units and functions of that company. It helps managers to comprehend and to control the flow of activities. The organisational structure is highly important to be established appropriately because it presets the paths on which a company can create value and ultimately determines the efficiency of the value chain. There are various problems that can come up especially in large companies like a lack of coordination, information distortion and motivational problems. The weaknesses of a organisational structure are to be kept in mind when setting up a corporate strategy or else the structure needs to undergo changes in order to follow the strategy. The fit between a chosen corporate strategy and the structure of an organisation has an important influence on how smooth the different organs of a companys can work together to fulfil the corporates objectives.