Organisational Design

Organisational design involves ensuring the firm has the necessary corporate structure and related systems in place to create the maximum amount of value.  Factors that leaders must consider are, the role of the corporate head office (centralised vs decentralised approach and the reporting structure of individuals and business units (vertical hierarchy, matrix reporting, etc.). Traditional line organisational structures are simplistic but rigid. It can take a good deal of time for information to pass through the company, with each link reporting to ONE direct supervisor. Such a structure is best suited to smaller companies. Functional organisational structures are similar to line structures; however, each tier may share information and offer direction horizontally (to one another). The structure is ideal for large companies with many departments and for those companies that need to meet strict deadlines.