Download Management structures

MANAGEMENT
STRUCTURES
FLAT, FUNCTIONAL, PRODUCT, GEOGRAPHICAL
DEFINITION:
Management structure refers to the organization of
the hierarchy of authority, which defines
accountability and communication channels within
an organization and with its external environment. ...
It also defines who is responsible for each role in an
organization.
FOR SMALL BUSINESSES
Small companies can use a variety of organizational
structures. However, a small company's organization
structure must be designed to effectively meet its goals and
objectives. Types of organizational structure in management
can include flat structures as well as functional, product and
geographical-structured organizations.
FLAT ORGANIZATIONAL STRUCTURE
This is where very few levels of management separate the managers
and their lower-level employees. Flat organizations work best when
a company has less than 20 employees, especially if the company
employs one or two employees per department. For example a small
independent shop would perhaps have the owner, whom is also the
manager, they would have all employees working under them to run
the shop.
FUNCTIONAL ORGANIZATIONAL STRUCTURE
A functional organizational structure is centered on job functions, such as
marketing, research and development and finance. Their organizational
structure is thus organized by department. You may therefore have for example
2 managers each with people reporting under them.
Look at The Arts and Media Departments at CRC for example. Norma Hanson is
the Program Area Manager for the arts, and has several lecturers that report to
her. Sue Breeze is the Program Area Manager for Media, and has separate
lecturers reporting to her. These are the same roles side by side but opperate in
different functions
PRODUCT ORGANIZATIONAL STRUCTURE
A product organizational structure has managers reporting to the president or head of the company by
product type. Product organizational structures are primarily used by retail companies that have stores in
various cities. However, stores in each city may still need a local human resources or marketing department
to carry out functions locally.
For example, Lets look at Browns a small department store company located in the North of England. It
may have a vice president of sporting goods, one of housewares and one of general merchandise at the
corporate office in York. One manager may report to each vice president. However, each manager may
oversee the work of one or more employees who travel and handle local marketing stores in several cities.
These employees may work for the sporting goods manager one week in York, then do merchandising for
the housewares manager another week in Helmsley
GEOGRAPHICAL ORGANIZATIONAL STRUCTURE
A company with 500 or fewer employees is still considered a small business; Therefore, small businesses
are still large enough to use a geographical organizational structure.
A geographical organizational structure is when companies decentralize the functional areas. For example,
unlike the product organizational structure, there may be a local marketing, finance, accounting and
research development person based in each region. For example, a small consumer products food
company may be large enough to place a marketing research manager and analyst in each of six different
regions. This can be important because consumers in various areas have different tastes. Hence, a
geographical structure will enable the company to better serve the local market.
WHAT TYPE IS YOUR CHOSEN BUSINESS
It may help to get in touch with your business and find out
how many employees etc that your business has. Some
businesses may already have a chart that shows its
management structure. Once you have that it will be easy
for you to ascertain which type of management structure
your chosen business employees.