Organisations exist to coordinate the work of many people towards a common business purpose (producing the organisation's products and/or services). To deliver its purpose, each organisation has a strategy, decided by the owner or the Board (as representatives of the owners), with business objectives, decided by the CEO. The work is then organised by managers and delegated to the right people, at the right level and in the right roles.
An organisation's structure helps to provide the shared understanding of the working relationships that exist between people whose work must be aligned and integrated to deliver the organisation's strategy. Issues created by poor organisational structure include:
The alignment of structure, functions, roles and systems of work is essential to deliver the organisation's strategy and business as usual activities.
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