What is Decentralization? Decentralization is a management philosophy in which the authority is delegated to middle and lower-level management in accordance with their responsibility. In simple words, it is a process of assigning decision-making power as close as possible to the level where the work is to be done. Decentralization of authority believes that an…
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Types of Organizational Structure An organizational structure is a system that lets employees know how they should work to achieve the organization’s common goals. There are several types of organizational structures you can choose to implement in your company. Let’s discuss the 10 most common organizational structures with their advantages and disadvantages so you can…
What is Team Organizational Structure? A team organizational structure is a structure in which different work teams are created to achieve common organizational goals. This structure emphasizes the creation of work teams instead of departments. The concept of team structure breaks down departmental barriers and decentralizes the decision-making authority to the level of the work…
What is Matrix Organizational Structure? A matrix structure is an organizational structure that combines employees from two or more different functional disciplines without removing them from their actual positions. It is a complex and unique organizational structure that combines two organizational structures to solve organizational problems or achieve specific objectives. Matrix organization is formed with…
What is a Multidivisional Structure (M-Form)? A multidivisional structure, also called M-Form is an organizational structure in which an organization is divided into different product divisions. Each division works independently and is responsible for its performance. It consists of a complex organizational structure with separate business divisions each working independently. When a firm has different…
What is Geographical Organizational Structure? Geographical organizational structure is the process of creating a structure of the organization based on different geographic regions and locations where the organization’s activities operate. As its name suggests, it creates organizational structures considering the geographical operations of the business. The geographic structure is suitable for organizations having expanded operations…
What is Line Organizational Structure? Line organizational structure is a structure where the authority flows from top to bottom and responsibility goes upward. It consists of direct vertical relationships which connect the task and position of each level with those above and below it. Line structure is one of the easiest and oldest forms of…
What is Line and Staff Organizational Structure? A line and staff organizational structure is a combination of line and functional organizational structures. Where line organizational structure includes a clear hierarchy of authority where authority flows from top to bottom and responsibility from bottom to top. Whereas, the functional organizational structure includes the creation of different…
What is Functional Organizational Structure? Functional organizational structure is a structure in which an organization’s task is divided into different departments based on the type of work, employee skills, and expertise. It includes the creation of different functional departments in the organization. Similar nature tasks are grouped into one department and other types are in…