Whether you realize it or not, all businesses have an organizational structure. You might have evolved and formed organically, but it's essential to deliberate and think about your organizational structure – particularly as headcounts increase, and the company grows increasingly complex. Every organization has a structure that directs how employees are managed and ordered. There are four main organizational structures that every leader needs to know about. Let's explore this subject area in more detail.
An organizational structure is a set of roles, rules, relationships, and responsibilities that determine how a company's activities should be directed to achieve its goals. It also governs the flow of information through levels of the company and outlines the reporting relationship among midlevel staff, senior management, executives, and owners. It is effectively a hierarchy for a company, though some organizational structures emphasize a near-total lack of hierarchy.
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