Company Management Structure: Choosing The Right One

Last Updated at: April 17, 2020
204
Company Management Structure

Strong company management drives the company’s growth of 360 degrees. From day to day operations to stock prices – it impacts everywhere. It is essential to have an organized company structure for better functionality.

  1. What is a company management structure?
  2. Importance and benefits of a company management structure
  3. Types of organizational structure

What is a company management structure?

A company structure is an outline that highlights the roles and responsibilities of individuals at various levels. It refers to the organization of various units in the company. Whether it be the information flow, decision flow or workflow pattern, the organizational structure of the company helps in understanding all of this clearly. It allows the departments of the company to collaborate and enhance the performance at all stages, helping to reach the company’s goals. 

Importance and benefits of a company management structure

An organized and well-planned company management structure allows the seamless operation of the company, making it easier to follow-up and complete the tasks, both for the managers and the employees. Even while recruiting, the company looks for employees possessing the right skill-set to align with their company’s goals and the organizational structure. A company structure offers the following benefits:

  • Efficiency: A well-planned company structure increases the efficiency of the employees and working several times. It makes it possible to complete the tasks more smartly and productively.
  • Functionality: Whether it be the planning or execution, a company structure works in the best way to increase the functionality of the company. 
  • Management: It is practically not possible for the CEO of the company to take follow-ups from every employee. The organizational structure allows the employees to understand who they need to report for their work or projects. The managers are then further associated with the director(s). 
  • Centralization and decentralization: Depending on the company’s goals and tasks, the company structure is either centralized or decentralized. A centralized company structure is a traditional way of organization, in which the CEO is at the head, and the employees are under the managers. While, the decentralized structure is the informal way, in which the employees of one branch can interact and work with other managers and employees. 

choose a right company

Types of organizational structure

Depending on the company size and levels at which they operate, there are several types of organizational structures, which include:

Functional structure

It is one of the most common structures, followed by companies at the global level. In this structure, it classifies the employees according to the specialization of their field. For example, in an IT firm, the CEO is at the head all the web developers, designers, software developers, etc., are classified into various departments. 

Project-based structure

If the company deals with several clients at once, the organizational structure is made according to the project. Depending on the requirement of the workforce for the project, the division of the employees takes place.

Market-based structure 

Based on the target audience and the industry it caters to, the division of the employees and the organizational structure takes place. This structure allows the company to keep a check on the constant changes, demands, and growth in the industry.

Geographical-based structure 

For the companies operating at the global level, the organizational structure caters to the requirements of several districts, cities, and countries. This allows the diversification of the business and planning the right approach to tackle the consumers.

Process-based structure 

Whether it be planning or execution, there is a requirement of the team at all levels. In this organizational structure, various teams including research and analysis, product development and till the delivery, are designed. 

Matrix-based structure 

This structure might seem complicated, but is one of the most interactive organizational structures. It involves both functional and divisional structures, allowing the employees and managers to have better means of interaction. It removes the communication gap between the employees of various divisions, who have to report to more managers and can interact with other team members as well. 

The various types of organizational structures are not just limited to the above structures, but the company can design the structure as per their convenience and operations levels. The more customized and well-organized the structure is, the more is productivity and efficiency. 

Conclusion

Hence, a good company management structure allows in understanding the company, along with its management system. Therefore, it is one of the best ways for seamless operations to increase productivity and expand the business at a higher level. 

 

 

 

 

0

Company Management Structure: Choosing The Right One

204

Strong company management drives the company’s growth of 360 degrees. From day to day operations to stock prices – it impacts everywhere. It is essential to have an organized company structure for better functionality.

  1. What is a company management structure?
  2. Importance and benefits of a company management structure
  3. Types of organizational structure

What is a company management structure?

A company structure is an outline that highlights the roles and responsibilities of individuals at various levels. It refers to the organization of various units in the company. Whether it be the information flow, decision flow or workflow pattern, the organizational structure of the company helps in understanding all of this clearly. It allows the departments of the company to collaborate and enhance the performance at all stages, helping to reach the company’s goals. 

Importance and benefits of a company management structure

An organized and well-planned company management structure allows the seamless operation of the company, making it easier to follow-up and complete the tasks, both for the managers and the employees. Even while recruiting, the company looks for employees possessing the right skill-set to align with their company’s goals and the organizational structure. A company structure offers the following benefits:

  • Efficiency: A well-planned company structure increases the efficiency of the employees and working several times. It makes it possible to complete the tasks more smartly and productively.
  • Functionality: Whether it be the planning or execution, a company structure works in the best way to increase the functionality of the company. 
  • Management: It is practically not possible for the CEO of the company to take follow-ups from every employee. The organizational structure allows the employees to understand who they need to report for their work or projects. The managers are then further associated with the director(s). 
  • Centralization and decentralization: Depending on the company’s goals and tasks, the company structure is either centralized or decentralized. A centralized company structure is a traditional way of organization, in which the CEO is at the head, and the employees are under the managers. While, the decentralized structure is the informal way, in which the employees of one branch can interact and work with other managers and employees. 

choose a right company

Types of organizational structure

Depending on the company size and levels at which they operate, there are several types of organizational structures, which include:

Functional structure

It is one of the most common structures, followed by companies at the global level. In this structure, it classifies the employees according to the specialization of their field. For example, in an IT firm, the CEO is at the head all the web developers, designers, software developers, etc., are classified into various departments. 

Project-based structure

If the company deals with several clients at once, the organizational structure is made according to the project. Depending on the requirement of the workforce for the project, the division of the employees takes place.

Market-based structure 

Based on the target audience and the industry it caters to, the division of the employees and the organizational structure takes place. This structure allows the company to keep a check on the constant changes, demands, and growth in the industry.

Geographical-based structure 

For the companies operating at the global level, the organizational structure caters to the requirements of several districts, cities, and countries. This allows the diversification of the business and planning the right approach to tackle the consumers.

Process-based structure 

Whether it be planning or execution, there is a requirement of the team at all levels. In this organizational structure, various teams including research and analysis, product development and till the delivery, are designed. 

Matrix-based structure 

This structure might seem complicated, but is one of the most interactive organizational structures. It involves both functional and divisional structures, allowing the employees and managers to have better means of interaction. It removes the communication gap between the employees of various divisions, who have to report to more managers and can interact with other team members as well. 

The various types of organizational structures are not just limited to the above structures, but the company can design the structure as per their convenience and operations levels. The more customized and well-organized the structure is, the more is productivity and efficiency. 

Conclusion

Hence, a good company management structure allows in understanding the company, along with its management system. Therefore, it is one of the best ways for seamless operations to increase productivity and expand the business at a higher level. 

 

 

 

 

0

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