ABSTRACT
As we have seen, the retail financial services sector in the 1990s is facing a period of intense competition, characterised by rapid changes in markets, technologies, and customer attitudes. There has been considerable discussion amongst managers, consultants and academics as to the most effective kind of organisational structures for companies competing in such an unstable environment. It is argued that the traditional, hierarchical organisational forms, so characteristic of the sector, have significant limitations and will not ensure survival over the next decade. They are criticised for being too slow to respond to a fast-changing business environment, for poor lateral communications, and for their functionally-based emphasis with large numbers of relatively unskilled staff working on fairly simple routine tasks.
