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Fundamentals of a business organisation — a more nuanced and practical view

17 June 2023
15 minutes

Last Updated on 12 May 2025 at 10:59

Although the company’s key functions are generally well-defined, there are often grey areas where responsibilities overlap. This can lead to internal conflict and operational inefficiency. Moreover, new functions are constantly emerging in modern businesses, challenging traditional organisational structures. This is happening increasingly, and rapid decisions have become necessary for survival. And catch-up changes are becoming increasingly frequent, too.

Traditionally, any relatively mature business is built around key functions, including General Management and Administration, Production, Purchasing, Marketing and Sales, Logistics, Accounting and Finance, Human Resources and Research and Development. Each of these functions plays an essential role in the overall running of the company. But isn’t that too simplistic a view? The reality on the ground is more nuanced.

This publication of over 4,400 words, equivalent to 18 well-filled pages in large professional A4 format, offers you some answers. Here are the subjects covered.

Are the company’s key functions always correctly defined in relation to its needs?

 

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How can roles and responsibilities within the company be clarified?

 

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Are hierarchical and functional links still relevant?

 

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Works councils or advisory board groups as a method of cross-functional collaboration

 

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The special case of Task Force teams in crisis situations

 

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Choice of organisational structure

 

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Different types of structure with advantages and risks

 

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Hierarchical or Pyramidal Structure

 

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Matrix structure

 

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Functional structure

 

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Divisional structure

 

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Choosing the right organisational structure – a practical step-by-step guide

 

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A few tips based on my experience

 

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Elena Debbaut is a strategic execution expert to boards and executive teams. She leads and advises on complex transformations when governance barriers, internal politics, or structural fragmentation prevent organizations from executing critical decisions.

Specialities:

• governance-constrained transformation
• operational restructuring
• strategic recovery & execution