9 Types of Organizational Structure Every Company Should Consider
Marketing Jobs9 Types of Organizational Structure Every Company Should Consider
Choosing the best organizational structure for your company, division, or team is a lot like picking out a new car.
At the most basic level, you're always looking for something road-worthy — something that can take you (and your passengers) from point A to point B without a hitch.
But beyond that, there are a lot of options to consider. Automatic or manual? Four-wheel drive or two? Built-in GPS? Leather interior? Flux capacitor? (Only if you're going back in time, of course.)
In the world of organizational structures, the options you have to choose from include things like chain of command (long or short?), span of control (wide or narrow?), and centralization (centralized or decentralized decision-making?), just to name a few.
What's the point of an organizational structure? As a business leader, do you even need one? As I said, org structures help you define at least three key elements of how your business is going to run.
As your company gets bigger, an organizational structure can also be helpful for new employees as they learn who manages what processes at your company.
Then, if you need to pivot or shift your leadership, you can visualize how the work flows would work by adjusting your organizational structure diagrams.
To put it simply, this chart is like a map that simply explains how your company works and how its roles are organized.
Here's what each of those elements means to an organization:...
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