Organizational Structure: Know the 4 basic elements If you own a business, then you are the person responsible for everything, be it earning profits or making losses. If you are eager to hire qualified employees to run your business smoothly and efficiently, then you do require proper business structure and organizational hierarchy. This will help define a chain of command, promotes communication, and allows your employees to know how they can advance their career in your company. Related Post: 15 Business Statistics You Need to Be Well Aware of Running Small Business Traditional business structure There are the following 4 old business structure models. However, with the digital marketplace flourishing at a fast pace, team-based, decentralized structures are found to disrupt the old models.
Hence you need to know in-depth about
The old models prior to taking the decision. Old models practiced Flat organizational structure: In most companies, this model tends to disrupt top-down, traditional Finland Phone Number List managed systems. No everyday ‘boss’ exists as there is decentralized management. Every employee needs to own up the task, thus eliminating red tape, bureaucracy, thus enhancing direct communication. Adopting this business structure will help your company to set up a top-down management system, especially for temporary events or projects. Functional organizational structure: Employees performing similar tasks are classified under the same group based on their specialty.
For example marketing operations human
Resources, senior management, operations, and accountants are classified accordingly. This structure allows taking quick decisions since their effective Fax List and timely communication among group members. They also get to learn from one another as they possess similar interests and skills. Also Read: Alternative Business Financing Options in 2020 Organizational Structure. Traditional business structure Matrix organizational structure. With Divisional & Functional models. Matrix organizational structure is considered to be quite complex as it combines divisional and functional models together.