The organizational structure of a small company can be structured in different ways. In fact, it is customary for a company’s regulatory scheme to undergo adjustments as it grows and transforms.
The function of the organizational structure is to create a hierarchy between the different functions of the company.
This is to increase the efficiency and effectiveness of business operations. To determine the organization of a small company, there are different types of organizational structure that can be used: linear and functional, through projects, through matrices and democracy.
Types of regulatory schemes for small businesses
Streamlined chart : the linear organizational structure consists of a hierarchy based on the functions performed by workers within the company. Therefore, this type of structural scheme allows employees to group according to their jobs and hierarchy. In these case, there is an executive at the top of the organizational structure, followed by deputy directors or district managers.
Functional organizational structure : the organizational structure depends on the hierarchy as well as the linear structure. However, in this case, communication between different regions is open and the same employee may have to respond to different managers. This form is useful when a company wants to make decisions exclusively by the CEO. But also, it is a strategy to avoid excessive specialization of employees and their separation from the general operation of the company.
The “holistic” structure is a new business model that has been developed in recent years. It’s a “no-coach” organizational structure that some companies are starting to implement.