ABSTRACT

A one-person organisation does not have a structure. Only if there are two or more people co-operating in the production of a good or service is there a need for a structure that determines who does what, who is the boss, who has authority, how decisions are made and by whom and so on. This chapter is looks at the structure of organisations. Many modern organisations now subcontract the provision of specialist services to outside contractors. The payroll and the payment of staff are often subcontracted, as are marketing and a number of other specialist services. People who organise and structure organisations are often ill-educated in business studies, and that people structure their organisations as a result of personal reflection, observing how organisations they have previously worked in have been structured, and how other organisations of which they are aware, are structured. Organisational structures emerge as a solution to economic imperatives, differing cultures, political processes, personal needs and personalities.