explain the different kinds of organisations? about 250 worsds
Answers
Answer:
Types of Organizations
At a Glance
In the same way that no two people can ever be the same, no two companies are identical. Although they may come across as having similar organizational structures within an industry, there will always be differences between firms.
The main reason for adopting a structure is to outline a clear hierarchy of the different company positions. In such a manner, every subordinate knows who to report to. Considering how vital an organizational structure is to the different facets of the business, managers should take their time determining the type of structure to take on. This article highlights the main types of organizations that currently exist.
Flat Organization
A flat organization is exactly as its name suggests. While individuals may hold an expertise, hierarchy and job titles are not stressed among general employees, senior managers, and executives. In a purely flat organization, everyone is equal.
Flat organizations are also described as self-managed. The idea behind this organizational structure is to reduce bureaucracy and empower employees to make decisions, become creative problem solvers, and take responsibility for their actions. Since there are minimal or no levels of middle management, a company that adopts this structure can end up being more productive by speeding up the decision-making processes.
Apart from increased productivity, firms with flat organizations have leaner budgets, since they don’t involve any pricey middle-management salaries. The only thing to keep in mind is that this structure typically works best for small to medium-sized companies. This way, a firm can decentralize decision-making while still maintaining its corporate integrity.
Functional Organization
Also referred to as a bureaucratic structure, a functional organization is one that divides a firm’s operations based on specialties. Ideally, there’s an individual in charge of a particular function. It’s like any typical business that consists of a sales department, human relations, and a marketing department. It means that every employee receives tasks and is accountable to a particular superior.
A functional organization confers several benefits. For one, there’s a total specialization of work. Secondly, work is performed more efficiently since each manager is responsible for a single function. The only drawback to adopting a functional organization is the fact that there’s a delay in decision-making. All the functional managers must be consulted when making major decisions, which can take time.