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Managing organisations structure and division of work

In broad terms there are five forms of structure and organisation can follow. These are, the function structure, the product-based structure, the market based structure, the process- based structure, hybrid, matrix and geographical structures.

Functional structure
This is a familiar form widely used over many years. In this form the units, departments or division are determined by the function of the processes which go on inside them.

Product based structure
In this structure each unit contains a number of separate functions, and any single function, say accounting for example, may occur in more than one unit. The functions that go into each unit are those necessary to support a particular product, class of product or services.

Market based structure
Sometimes also called the segment or market segment based structures, these deal with grouping organisational resources and processes around particular market segments. Market segments are increasingly common as the patterns of business change.

Next week: details on the processes
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