The organizational structure that your company currently has may or may not be the best option for when it comes to meeting goals. In order to operate a business efficiently, a successful organizational structure is vital, because it helps to allow a company to more specifically understand what the roles, responsibilities, and relationships are for all different types of levels and management. Depending on the company, these processes can be different.
From the team at Cloud Peak Law Group comes this new infographic that analyzes 10 types of organizational structures in business. These processes can vary by company due to several different factors, such as the size of the company, whether or not the employees have obtained specialized skills, the industry that the company is in specifically, and if there are multiple office locations – all important factors when determining what the best organizational structure is.
One common example of an organizational structure in business would be what’s referred to as a Hierarchical Structure. This is one of the most common types of organizational structures, and is essentially laid out as a pyramid that has several different levels of management. In a Hierarchical Structure, the chain of command begins with the very top position in the company, the leadership roles flow downward, and every employee within the company (outside of where the structure begins) has a supervisor.
With a Hierarchical Structure, there are certainly both advantages and disadvantages. Advantages to this type of organizational structure include having the levels of authority and responsibility clearly defined, employee development and growth within the company are both encouraged, and there can often be strong relationships among employees that are on the same team. The disadvantages, however, can include things like seeing limitations on collaboration between departments, raised bureaucracy slowing down changes and innovations, and employees prioritizing their departments over the health of the company as a whole.