Regulations on the company's organizational structure

Which organizational structure should be applied when establishing a company is a difficult problem for leaders. Because the company's organizational structure plays a very important role and greatly affects the company's future operations.

In today's fiercely competitive market economy, businesses that want to survive and develop need resources, capital, business strategies and a strong organizational structure. So what is the company's organizational structure? What are the prescribed models of organizational structure? Let's immediately read the following article of Saco Inc to better understand this issue.

What is the company's organizational structure?

Even though we have heard of the phrase corporate organizational structure, very few people know what the exact concept of corporate organizational structure is? A company's organizational structure is defined as a visual diagram that a company uses to determine roles, powers, and responsibilities assigned and arranged at different levels. From there, coordinate with each other to perform work effectively, helping the company achieve common goals.

Depending on the company's goals and strategies, the organizational structure will be established accordingly. In the case of a centralized authority structure, the senior management class will be the ones who hold the power and decisions as well as strictly control the work of departments and divisions. As for the decentralized structure, decision-making power is distributed to each department at different levels.

What are the regulations on the company's organizational structure?

So according to the regulations on the company's organizational structure, what models are applied to establish an organizational structure to help the company have specific orientations and strategies that bring high efficiency in the process? business.

In fact, there are many models of specific company organizational structures:

Company's organizational structure model by function
Product-based organizational structure model
Market-based organizational structure model
Process-based organizational structure model
Model of online organizational structure
Circular organizational structure model…..

However, the most popular models are specifically the following 4 models:

Functional organizational structure

The first is the functional organizational structure model. This is a type of structure in which a company is divided into many small departments with different roles and tasks. At the head of each department, there is a manager or director who is directly responsible for answering to the CEO, who has a higher position and is responsible for managing that entire department.

Geographical organizational structure

Next is the geographical organizational structure, a department responsible for operating as a separate company and controlling the resources and costs spent to serve each project. specifically. In addition, this structure can be used to divide departments according to specific geographical locations, for example: Northern Region, Southern Region, ....

Matrix organizational structure

The matrix organizational structure is known as a hybrid form that optimizes the strengths of the functional organizational structure and the project-based organizational structure. In a matrix structure, employees can report to two or more bosses depending on the project situation. This helps the working process be flexible, increasing work efficiency, thereby supporting and promoting the company's business operations.

The application of a matrix organizational structure helps employees share their knowledge with other departments. Helps employees in the company get along and understand each other better according to the roles of each department. Thanks to that, employees can expand their skills and knowledge and have the opportunity to improve their professional qualifications, bringing development advantages to the company in the future.

Flat organizational structure

Flat organizational structure is one of four corporate organizational structures applied by many companies and usually startups or small companies will apply this structure. To put it simply, flat organizational structure means that employees have autonomy and often companies that use this structure will have high operating speed.

Each company uses a different organizational structure depending on the actual situation. Therefore, the appropriate organizational structure to apply depends on many factors. So if your business has just been established but doesn't know which company organizational structure model to choose, you can refer to the structures that Saco Inc shares in this article