A Flat Organizational Structure can lead to rivalries and loss of control over the business. There can be many advantages or disadvantages of such a structure. This structure is often used by small businesses, where one business owner, for example, might have a few employees who are mostly self-managed and empowered to perform their tasks. This structure empowers employees and encourages self-management. This is a structure with very few levels of hierarchy. The organizational structures reviewed here are: the Functional, Divisional, Flat and Matrix structures. In order to better understand organizational structures, let’s take a look at four possible types of organizational structures in detail. This is different from a top-down Functional structure or a Flat structure with few levels of hierarchy. This structure is thought to be more flexible and conducive for better communication. What is a Matrix Organization?Ī Matrix Organization has a hierarchy which is divided according to product or project teams. In this post we will discuss the various types of organizational structures, with a specific focus on the Matrix Organizational Structure to help you determine if it is the right structure for your company. There are various structures used by organizations according to their specific needs. An organizational structure determines the chain of command and the flow of information, instructions and activities in order to acquire organizational goals.
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