What is Organisational Structure?
An organizational structure is a system that lays a framework for how operations are carried out or how activities must be conducted in an organization to achieve the long-term goals of the organization. These activities could be related to rules, responsibilities, and roles. The structure also decides how information is passed on or circulated to different employees at different levels in the organization. The organizational structure is what sets the hierarchy in an organization.
What are the Different Types of Organizational Structures and their Importance?
1. Functional Structure
This structure organizes a company based on departments or functions. It is a traditional structure used in big and small organizations. This structure segregates teams according to their functions. Employees can clearly understand what their specific role is and work accordingly.
2. Divisional structure
Divisional structure divides teams based on products, markets, or geographic locations. Teams work and operate independently as they focus on their specific product or market. As they work independently, they can adapt and respond to the different needs of the market. There is also a lot more accountability here.
3. Matrix structure
This is a mix of functional and divisional structures. Here, employees do not report to just one manager. There is a functional as well as a product/project manager. This structure ensures that teams can work on different projects simultaneously while reporting to their functional departments. The structure promotes better collaboration and flexibility.
4. Flatarchy structure
As the name suggests, this is a mix of flat and hierarchical models. This is a structure implemented in small companies or companies that are yet to make a mark, and must move fast, where decision-making must be quick as well. Employees are given the authority to make certain decisions to help facilitate the same.
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