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Factors affecting organisation structure

The "structure" of any organisation is the way in which the work required to achieve the organisation's mission is divided into "jobs" that are then allocated to individuals to fulfil.

There is no perfect solution to developing an organisation structure, and no perfect way to divide the total work among the people of the organisation.

However there are factors that will likely influence the makeup of the organisation's workforce. Among the more important factors are:

These factors are outlined below:

The mission of the organisation

An organisation with a mission to provide service will be structured differently to an organisation that exists primarily to sell products.An organisation that is a non-profit organisation will be structured differently to an organisation that is a for-profit business.

The priorities of the organisation

Managing an organisation is about dealing with the problem that there is always too much to do and too few staff to carry out the work. Management must determine which tasks are most important and assign personnel to them. Therefore the organisation structure will depend on what decisions have been made by management with respect to priorities.

Goals and objectives to be achieved

Statements of "Goals" and "Objectives" represent what the organisation wants to achieve. They change from time to time as a result of the changing environment in which the organisation lives. As Goals and Objectives change so will the organisation's structure.

Capability of Human Resource

Generally the human resources of any organisation is the key factor determining success. With enough good people, organisations can achieve all that is desired. However finding good people is often very difficult, especially when you need them as volunteers (unpaid) in non-profit organisations. It is often the case that priorities, goals and objectives and funding are determined according to what "good people" can be found,

Financial resources available

Organisations cannot solve problems by simply employing more people, if only this was the case! The number of paid people in an organisation is limited by the availability of funding. Even when organisations rely on volunteers, the need for money does not subside.

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