ABSTRACT

In much of the management literature, the structure of an organisation is treated as 'boxes on a chart' – only vaguely related to 'how things really work around here'. The chapter argues that, when an organisation is established to achieve a purpose, that structure is the framework for the distribution of authority and work. The organisational levels reflect the qualitatively different mental processing abilities found in the population. Each organisational level requires the creation of pathways of complexity unique to that level. Placing a role in an organisational level is an executive decision that should be based on an understanding of the level of work required to effectively handle the bundle of tasks in that role. The work levels form a depth structure for employment hierarchies. They form the vertical skeleton for an effectively functioning organisation. In each work level there may be a need for high level technical work as well as managerial work depending upon the organisation.