Traditional Business Organizational Structure

An organizational structure is the framework in which a business or organization completes internal tasks. Organizations are typically broken down into divisions, departments and functions.

Historical

Historical organizational structures were more bureaucratic than those in today’s environment. Business owners or directors were responsible for making decisions and using several management layers to drive business operations.

Modern Day

Current organizational structures have wider variety. Organizations can be flat, network, matrix or virtual. Business owners and directors can select the structure that works best for them and the industry in which their business operates.

Function

Flat organizations use a team of managers to run the business. Network organizational structures outsource business functions to other companies. Matrix organizations combine several structures in business operations. Virtual organizational structures use business technology as part of the management structure.

Considerations

Business owners and directors can structure their organization around the company’s corporate culture. The corporate culture is the tangible or intangible mission, vision and values that govern how owners, managers and employees work in the business.

Benefits

Organizational structures help business owners and directors run their organization. Business structure ensures goods or services are produced in a consistent manner according to a company’s standard operating procedures.

References

• BNET: Organization Structure