Thursday, October 14, 2010

Organisational structure

Manage Mentor
Winning Strategies for Business
Rajat Kanti Baisya
(http://www.sagepublications.com/)

When structure hinders your speed

Organisational structure has a direct relationship with its cost and effectiveness, writes Rajat Kanti Baisya in Winning Strategies for Business. It becomes imperative for large companies to design, at optimum cost, an effective organisation in line with the realities of the present business environment, he urges, because one of the significant cost elements in any organisation is its manpower cost, which varies from 10 to 15 per cent of net sales in a typical manufacturing enterprise.

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