If one is to dissect the skeleton of a successful organization or business, the right organizational structure would be the backbone. This is because beyond having a good product or services, organization structure determines every other aspect of the business. In fact, organizational structure contributes to how fast or profound the production of goods and services in the business would be. Organizational structure constitutes where your business is going and how it will reach there. It encompasses all aspects of your business. This is why it is advised that beyond having a good vision and mission for your business, have a strong organizational structure. This article examines 3 types of organizational structure.
Functional organizational structure
Functional organizational structure departmentalizes its employees by their job role. This is why companies that practice this type of structure set the office department by department. The marketing department occupies one corner of the office, the content and copywriter another space, the social media manager another space, and so on. Functional organization structure allows employees to focus on their role and expectation. However, this type of structure is usually not effective with companies that sell a lot of products. Collective goals can also be impeded as companies are focused more on departmental goals.
Hierarchical organizational structure
Organizations that practice office arrangement and work ethics by title or level operate the hierarchical kind of organizational structure. Employees in this office are ranked based on their position, except for those at the very top who are already recognized as the top management of the company. One of the benefits of this type of structure is that it promotes respect and loyalty, however, hierarchical organizational structure can be hierarchical in nature and might slow down productivity.
Flat organizational structure
In a flat organizational structure, concentration is on productivity rather than seniority. Hence employees are usually in close proximity except for the leadership or management of the company. A good example of a company that operates this kind of structure is Google. A flat organizational structure fosters greater innovation ideas among employees. It also facilitates coordination and teamwork among employees. However, in a situation where the role of each individual in the company is not clearly defined, this might hamper productivity.
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