Why We Need Different Types of Organizational Structure?
There may many answers to the question of how to successfully promote a brand, but effective types of organizational structure are the very basic determinants of such successes. A company with a well-structured framework would have a higher level of clarity and focus in terms of leadership, teamwork, and authority.
Most Essential Types of Organizational Structure
In reality, every business organization from a startup to the international enterprise has a specific organizational structure, but all of such types of organizational structure can be summarized as the following main formal categories. Each of them has both benefits and drawbacks, and may only work at sometimes depending on your company goals, organizational culture, salary structure and so on.
This type is also known as the bureaucratic organizational structure, which is mainly based on the specialty such as sales, finance, marketing teams and more. Each division has a manager or leader who oversees the overall department.
An org chart shows an enterprise’s workflow and authority structure. Normally, organizations in the world can be categorized into hierarchical and non hierarchical ones. The hierarchical org chart type accounts for the majority of the worldwide corporate framework of business organizations, while a non hierarchical organization has fewer centralized authority with fewer management levels.
In the following example of a technology startup, each member in their own department has equal authority and power. Moreover, one member is selected from each department to collect and share info with other departments.
What Is a Nonprofit Org Chart?
A nonprofit org chart shows the organizational structure for a nonprofit institution (NOP). In reality, NOP parties are normally not driven by business profit, and such types are often used for trusts, cooperatives, charity and religious groups.
Nonprofit Org Chart Normal Structures
Here comes a template for a nonprofit organization. Overall, the sub-departments are in a similar pattern with profit organizational structures because you can clearly see the sections for Human Resources, Marketing, and development etc. However, there is a Fundraising Committee in the diagram below, which is different from commercial organizations.
What Is a Flat Org Chart?
The flat type organizational structure, which is also called as the self-managed type, only has a few levels of management between general staff and managers. In other words, you would probably see a large number of employees or interns supervised by every single executive. Therefore, in such cases, department leaders in a flat org chart usually have more responsibility than a manager in a traditional hierarchical org chart. Moreover, the main purpose of the flat organizational structure is to empower employee.
Flat Org Framework Main Advantages
- Reduce unnecessary layers of the managers in order to improve the coordination and productivity.
- A quicker decision-making process among team members than those companies who have overloaded management positions.
- Practice personal leadership in an ever more open and free working environment.
ICS Org Chart: Basic Concept
An ICS org chart means the institutional structure of the Incident Command System. It is a standardized and effective managemental hierarchy to control and coordinate emergency events. ICS has now become one aspect of the National Incident Management System (NIMS) for the American government.
You can see one of the ICS org chart templates below:
You are telling people about your business since the minute you start creating the startup org chart. Traditionally, people use org charts to explain who works with whom in an organization. Furthermore, an effective startup org chart can really have a considerable impact on your business. So… just thinking about how to boom your productivity via org charts.
Startup Org Chart: What Is Your Business Type?
Product or Service-based Framework
This type usually has a number of products waiting for development. The shared divisions are all the same for each of the product team. The sub-departments of each product team are normally also the same. The type is used when each product features have a considerable difference in the development process.
Just wondering when was the last time you pay attention to the effectiveness of your organizational structure? As your company grows, you will find the need to hire in response to immediate or narrow needs, your original design cannot meet the needs. It might be time to improve your company organization structure to make the company run effectively and smoothly.
Following article will share some ideas on how to enhance the company organizational structure with you.
Wondering what’s the purpose of the organizational chart? Read this article and you will find the answer and organize your business better.
What Is Organizational Chart
An organizational chart is a graphical representation of the roles, responsibilities, and relationship between individuals within an organization and it is a simple way to visualize how workflows within a business. It can be used to depict the structure of an organization as a whole or broken down by departments or units.
Org chart can be classified into two types: vertical and horizontal, based on the style of the layout. A vertical org chart looks like a pyramid. At the top is the CEO or company president. A single segment consists of a series of middle management and the manager who is responsible for their department. In contrast, a horizontal org chart has no middle management, hence normally all employees need to report to only one manager. Such type is also called the flat org chat. This article is going to explain the most significant differences between vertical org chart and horizontal org chart in terms of decision-making, collaboration, and communication.
Figure 1. Vertical Org Chart Example