Modern communication structures include several methods of organizing the workplace, regulating how managers communicate with employees. Each structure has its advantages, but it also depends on the company’s needs and goals.
A matrix organization structure, for example, allows team members to report to more than one manager. This approach can be useful when teams need to respond to changing customer demands quickly.
Flat Organizational Structure
The flat organizational structure is similar to the divisional model but eliminates a few managerial levels. All employees, including management, are empowered to make decisions without going through the chain of command. This decentralization is common in startup companies.
This structure can save costs by eliminating excess managerial layers. It also speeds up decision-making because information does not have to pass through as many channels. Moreover, the short chain of communication ensures that employees receive information quickly, reducing the chances that information gets lost in translation from upper management.
However, flat structures do not always provide the same level of job satisfaction for workers as hierarchical structures do. This is because the lack of clear lines of authority can lead to role ambiguity, which can cause frustration for employees who need a strong sense of purpose and security in their roles (Ghiselli& Johnson, 1970). Companies can overcome this by emphasizing transparency and encouraging self-motivation by giving workers opportunities to develop new skills outside of their current role.
Network Organizational Structure
A network organizational structure is different from other structures because it minimizes authoritative distance between leadership and teams. This is accomplished by limiting the number of levels between leadership and individual team members, while simultaneously allowing for flexibility within departments.
This structure is often best suited for companies that outsource tasks to third parties or partner with other organizations for key projects. It also works well for companies that need a high degree of flexibility in their organization.
A functional structure is similar to a divisional structure, but it places greater emphasis on specialization and expertise. Using this type of structure may result in greater efficiency, but it can also limit the ability to change based on new challenges or changes in the marketplace. It is also more prone to conflict between departments, as employees are likely to feel they have too many responsibilities. Fortunately, this can be avoided by making sure departments work together on all aspects of a project.
Divisional Organizational Structure
Divisional structures split business activities into separate groups based on regional and product differences. This structure allows each group to operate independently with clear accountability and decision-making.
This type of structure is ideal for companies with large number of different products. It allows managers to be more involved with specific market segments and anticipate their needs. This can help a company avoid having to make changes based on global market trends that could affect its entire portfolio.
It also helps companies to be more responsive to local conditions. For example, if a division is losing money, managers can quickly shut down that division and redirect resources to profit-making departments.
One drawback is that a divisional structure can create silos within the organization, preventing managers from sharing best practices and lessons learned with other areas of the business. This can also prevent a business from taking advantage of economies of scale. This can be mitigated by using an integrated business management software solution with next-gen technology to encourage cross-functional collaboration.
Circular Organizational Structure
A circular organizational structure is a type of hierarchical organization that features concentric rings that expand outward from the top, each containing higher-level managers and employees. This structure is intended to encourage communication between each department and among the different ranks of management.
Another option is the process-based structure, which organizes teams based on the internal business processes of a product or service. This type of structure is ideal for businesses whose processes take precedence over individual projects. More details you can get there manish web.
Lastly, there’s the market-based organizational structure, which is perfect for industries that work with multiple markets and have advanced knowledge of their varying needs. This type of structure also allows for more flexibility in responsibilities and can keep businesses informed of changes in demand by each segment. It’s important for companies to have a clear plan in place to communicate with all of their team members, especially when it comes to re-organizing the company’s hierarchy. Otherwise, employees may be left confused about their reporting obligations and who to turn to for assistance.