Internal Organizational Structure

Internal organization structure is often arranged by departments or functions.

Internal organizational structure is often contingent upon the size of a company or the types of products it sells. Internal organizational structure enhances communication between employees and motivates employees to work harder and more effectively, according to HRM Guide.

Flat Structure

Most small organizations with 20 or fewer employees use a relatively flat organizational structure. A flat organizational structure may include two or three levels of reporting. One advantage of a flat organizational structure is that it facilitates decision-making.

Department-Focused Structure

Many corporations have a department-based or functionally focused internal organizational structure. For example, vice presidents of marketing, engineering and advertising may have marketing, engineering and advertising directors reporting to them, respectively. Department-focused internal organizational structures encourage teamwork and enable departments to break projects into various tasks.

Product-Focused Structure

Companies such as retail stores often use a product-focused internal organizational structure. For example, vice presidents of housewares, sporting goods or apparel will usually have directors reporting to them, and managers of these various products will report to directors. An advantage of the product-focused internal structure is that it enhances product quality.

References

• HRM Guide: Organizational Structure
• LearnManagement2.com: Flat Structure Organisation

Resources

• BusinessDictionary.com: Organizational Structure