Organisational level and efficiency

In 1776 Adam Smith demonstrated that due to division of labour a much higher productivity can be achieved. To reap the efficiency gains two elements are needed: The subtasks are coordinated to add up to a single product; the responsibilities and competences are defined clearly. Still today, this is the main objective of a company wide organisation.

Organisational structure and Process Organisation

Structure Processes
Organigram Control charts
Job descriptions Flow charts
Function / responsibility-
competences diagramms
Network map

Most companies are organised either as in a functional or divisional way, from these two basic organisational forms others like matrix, multiple line systems or profit centre organisations can be derived. Multidisciplinary tasks are organised in divisional staff positions.

Functional Line-Staff Organisation

Divisional Organisation


It is important that an optimal level or organisational regulations, which is adapted to the complexity of the tasks, is found. There should neither be too little nor too much regulations. Besides the formal organisation there often exists a parallel, informal organisation where often the real lines of power and information are to be found. It is important to be aware of this informal organisation to strengthen its positive effects and to avoid obstructive conflicts.

In many company’s organisational structures there are somewhere problem zones which cause frictional losses. In the worst case these conflicts may result in high costs. For the long timer survival of a company it is important to recognise the difficulties and to eliminate them.

We help you with the analyses and the improvement of your formal and informal organisation.