Chapter 2
　　organisation structure
　　Chapter learning objectives
　　Upon completion of this chapter you will be able to:
　　§ explain the different ways in which an organisation might be structured
　　§ list advantages and disadvantages of each type of organizational arrangement
　　§ define the terms scalar chain and span of control
　　§ what factors influence the span of control
　　§ give reasons why ownership and management of the organisation are often separated
　　§ explain what is meant by centralised/decentralised structure
　　§ what are the advantages and disadvantages of the informal organisation
　　§ identify what impact the informal organisation has on the business
　　§ how can managers foster the benefits of the informal organization while at the same time reducing its potential disadvantages.
　　1 Organisational structure
　　1.1 Different types of structure
　　A typical pattern of structure change can be represented by the following sequence.
　　Entrepreneurial
　　§ This type of structure is built around the owner manager and is typical of small companies in the early stages of their development.
　　§ The entrepreneur often has specialist knowledge of the product or service
　　§ Example owner/managed business
　　AdvantagesDisadvantages
　　§ Fast decision making.
　　§ More responsive to market.
　　§ Goal congruence
　　§ Good control
　　§ Close bond to workforce§ Lack of career structure.
　　§ Dependant on the capabilities of the manager/owner
　　§ Cannot cope with diversification/ growth.