This chapter looks at the different types of business structure, and the effect the structure has on the information needed. It also looks at the types of changes that business might implement to improve their performance.
The information needs of different business structures
One of the common structures found in medium-sized organisations is the functional structure. This means that people within an organisation are organised by function. So, for example, there is a finance department, a manufacturing department, a sales department, and so on.
As organisations grow they will often develop a divisional structure, where each division has its own functional departments and where the divisional manager has a degree of autonomy.
Network (or matrix) structure
An example of this may be found in firms of accountants, where there may be managers responsible for each individual office within a country, but at the same time there may be managers responsible for different activities in all offices throughout the country.