What do you think is the most ideal type of structure for an organization?
When you start a business, you create a business plan. Your organizational structure is a key element of this plan. Show
Why is it so important? Well, the system that you choose will determine how your business functions on a day-to-day basis. In that sense, it could mean the difference between success and failure. Traditional Organizational StructureA traditional organizational structure looks like a pyramid. At the top, you have the CEO. The layer beneath consists of all who report to the CEO. Below them, you have the people who report to those managers.
Traditional organizational structures can be functional or divisional. This determines how you divide the groups as you move down the pyramid. A divisional organizational structure differs because it divides people based on specific projects or locations as opposed to departments. This system might be preferred by larger organizations. Whether functional or divisional, the advantage of a traditional organizational structure is that there is an obvious chain of command. Employees know where to take their issues and who they are accountable too, as they have a clearly designated manager. Messages to and from the CEO are mediated by management, filtering the issues that reach leadership. This can be more efficient for the CEO, so long as they trust their management team to handle low stake problems.
You could combine both functional and divisional structures to create a matrix system, one in which people are grouped into their functional departments before they’re separated again into divisional projects and products. The advantage of a matrix structure is that it provides more autonomy to each team while maintaining cooperation between managers. Project-Based Organizational StructureJust like in a traditional system, the CEO sits at the top of a project-based organizational structure. However, this type of structure is much more flexible. It was devised to be adaptable, suiting businesses undergoing processes of evolution that have constantly changing priorities. The advantage of this system is that every team has a focus: the project that they’re currently working on. Leadership is easy-to-understand, since employees report to a project manager who in turn reports to their department head. As the company’s needs shift, projects and their teams can be altered without restructuring the whole organization. A disadvantage of this structure is that if projects are highly separated, the opportunity to share knowledge is missed. There’s also the risk that work is duplicated unless managers and department heads remain in close communication. Flat Organizational StructureA flat organization has either very few or no levels of middle management at all. That means you could potentially find junior employees directly below the executive level. Of course, this is a structure that makes more sense for startups or smaller organizations. The motivation for choosing this structure instead of something more traditional is that it removes the departmental boundaries between employees. This means they can work together towards the overall vision of the company. Skills and resources can also be easily shared. Factors to Consider When Choosing an Organizational StructureFeeling stuck between the many options available? Here are some of the things you need to think about when you’re deciding how to structure your organization. StrategyThink about how your business will operate. Will it have multiple permanent departments? Or will the work that is being done change significantly over time? If you need your structure to respond flexibly as tasks change, then an open or project-based arrangement might be most effective. SizeIf you have a small business, a flat structure might be most appropriate. Why would you create unnecessary hierarchies when your team is small enough to communicate easily within itself? In that situation, a multi-layered system might cause more complications than clarity. TechnologyTechnology will play a significant role in how your business functions, especially if you have team members working remotely. Bear in mind that they’ll need clear lines of communication: someone to report to and someone they can ask for help. What is the ideal type of organizational structure?A traditional line organizational structure is truly the place to start for most companies, especially the smaller ones that don't necessarily comprise a vast number of departments or require a major number of links in the chain of command/communication.
What is the most effective structure for a company?A hierarchical structure, also known as a line organization, is the most common type of organizational structure. Its chain of command is the one that likely comes to mind when you think of any company: Power flows from the board of directors down to the CEO through the rest of the company from top to bottom.
What are the most common types of organization structure?Here are 10 types of organizational structures commonly used by businesses with pros and cons for each:. Hierarchical structure. ... . Functional structure. ... . Matrix structure. ... . Flat structure. ... . Divisional structure. ... . Network structure. ... . Line structure. ... . Team-based structure.. What are the 5 best types of organizational structure?5 Types of Organizational Structures for Small Business. Functional reporting structure. The functional reporting structure is one of the most common types of org structures. ... . Divisional or product reporting structure. ... . Process-based structure. ... . Matrix structure. ... . Flat structure.. |