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An organisational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of a business's aims. The structure determines how information flows, how decisions are made and how employees are grouped. Choosing the right structure is a critical strategic decision.
The structure of a business affects:
A functional structure groups employees by specialisation — for example, marketing, finance, operations, HR and sales. Each function is headed by a senior manager who reports to the CEO or managing director.
Advantages:
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