Types of organizational structure
What are the characteristics of a functional structure?
A functional structure organizes a business based on specialized functions or departments such as finance, marketing, operations, and human resources. Characteristics of a functional structure include clear functional divisions, specialized roles, centralized decision-making, departmental focus, clear career paths, and opportunities for functional expertise and specialization.
How does a hierarchical (flat and narrow) structure function in a business?
A hierarchical, flat, and narrow structure in a business has a limited number of hierarchical levels, with a wide span of control. This structure promotes direct communication, quick decision-making, and efficient coordination. It reduces bureaucracy and enables organizations to respond rapidly to changes and market demands. A flat and narrow structure fosters a more informal and flexible work environment, encourages employee empowerment and autonomy, facilitates cross-functional collaboration, and promotes a sense of ownership and accountability. However, it may have limitations in terms of limited vertical career advancement opportunities and potential challenges in managing larger teams.