How the structure of a company can influence its relationships

“Structuring your organisation is very crucial for success, you need to take divisions of work and organise them into logical groupings. You need to link the hierarchy, levels of authority and responsibility to create formal channels of communication, which will set the foundation for good relationships.” (L. Bolton 1998)


There are many different company structures, each with its’ own set of benefits, which can be applied to different industries. However having the wrong structures for a specific business could have adverse effects resulting in loss in communication, which ultimately will lead to bad relationships within the company where in any industry is very harmful.

All companies have a specific organisational structure. The most common structures are functional, matrix, divisional for what reason a company may adopt one structure over another may depend on th...