Wednesday, May 2, 2018

The elements of organisational structure of a corporation.

Organisational structure of a corporation

A "corporation" is an organisational entity that engages in economic activities such as production, sales, and provision of services typically for the purpose of making profit. In the narrow sense, it refers to a private corporation such as a "stock company" or "limited liability company". In the wider sense, it also includes public corporations in which the government has a stake.

An "organisation" is a collective entity that has been assembled and integrated into system to achieve a common purpose.

(1) Structure of a corporation

A corporation is an organisation that is structured according to task in order to conduct operations efficiently.
There are various forms of organisation including functional organisations, divisional system organisations, matrix organisations, and project organisations.

  • Functional organisation
A "functional organisation" is structured bijou function such as manufacturing, sales, marketing, accounting, and human resources. This type of organisation's key characteristic is that it enables the pursuit of specialisation and efficiency in each job function, which in turn allows each organisation to produce high quality results. At the same time, there is a tendency for boundaries to develop between each functional organisation, and issues can arise from departments acting in their best interest.

A functional organisation is comprised of a "line (direct) department" and a "staff (indirect) department". A line department is directly involved in the areas of earning profit such as sales, production, and materials. A staff department supports the line department in areas such as human resources, accounting, and general affairs.

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