Evaluating organisational structures in the face of uncertainty

Question 1

market uncertainty

Answer 1

If the external market becomes highly volatile or uncertain, a business may benefit from a more flexible structure

Project-based structures can help a business to respond quickly to changing market conditions than highly-structured hierarchies as they allow for collaboration across functional areas and resources can be shared

Question 2

rapid technological advancements

Answer 2

When technological change significantly impact an industry a business may require a structure that allows for innovation, agility and quick decision-making

Flat structures can be suitable as they encourage information sharing, collaboration and empowerment of employees at all levels

Question 3

global expansion

Answer 3

For businesses expanding into international markets a regional organisational structure may be appropriate
It enables coordination and control of operations across different countries taking into account local market dynamics, laws and cultural differences
It supports centralised decision-making while allowing subsidiaries to adapt to specific regional needs

Question 4

competitive pressures

Answer 4

Intense competition may call for a structure that enables speed, efficiency and customer responsiveness
Decentralised structures empower teams to make faster decisions and respond directly to customer demands
This promotes speed and encourages a customer-focused approach that may provide a much-needed competitive edge

Question 5

factors that also should be taken into account when selecting and implementing a ew organisational structure

Answer 5

Factors such as organisational culture, leadership style and employee capabilities should also be taken into account when selecting and implementing a new organisational structure