DOI link for Organisational structure
Organisational structure book
To enable people to collaborate effectively when organisations increase in size, a division of tasks is necessary. Coordination and direction are impossible without communication about the nature and progress of the activities within the organisation. Once a satisfactory form of collaboration has been found, it then becomes stable and the structure of the organisation becomes clear. The structure is therefore the result of the choices made regarding the division and coordination of activities or tasks. In the division of activities that is necessary in organisations to produce goods or provide services, different choices are possible. Senior management is responsible for the overall direction of the organisation. Coordination of the activities of two or more employees in an organisation is most easily and quickly achieved through collaboration. The advantage of P-grouping is that the organisation is divided into smaller and reasonably independent units.