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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.