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Organisational Structures: BTEC Business
Organisational Structures: BTEC Business
uk
Organisational Structures
BTEC Business
Board of Directors
Functional Structure
Advantages Disadvantages
• Specialisation – each • Closed communication
could lead to lack
department focuses
of focus
on its own work
• Departments can
• Accountability – become resistant
someone is to change
responsible for the • Coordination
section may take too long
• Clarity – know your • Gap between top and
bottom
and others’ roles
An Example of Organisation
by Product/Activity
Hewlett Packard
Organisation by
Product/Activity
Advantages Disadvantages
• Clear focus on market • Duplication of
segment helps meet functions (e.g.
customers’ needs
different sales force
• Positive competition
between divisions
for each division)
• Better control as each • Negative effects of
division can act as competition
separate profit centre • Lack of central
control over each
separate division
Organisation by Area
Hewlett-Packard’s
Headquarters Worldwide
Hewlett Packard
Organisation by Area
Advantages Disadvantages
Other Organisational
Structures
• By Customer:
Similar effects to structuring
by product
• By Process:
Similar to structuring by function
Organisational Structures
• Now go to the Activity for more……