What's it: An organizational structure by customers is an organizational structure in which the company structures the organization based on the customer groups it handles. It is similar to an organizational structure by products. However,
Organizational Structure
Organizational Structure By Hierarchy: Advantages, Disadvantages
What's it: An organizational structure by hierarchy or, in short, a hierarchical structure is an organizational arrangement in which a company has a long chain of command. The company has many middle managers who bridge the top management to the
Organizational Structure by Function: Advantages and Disadvantages
What's it: Organizational structure by function or functional organizational structure is an organizational structure in which a company arranges an organization based on business functions. Each function requires specific knowledge and skills.
Organizational Structure By Product: Advantages and Disadvantages
What's it: An organizational structure by product is a structure in which companies organize based on what they sell. Each product will be under a different division. They operate independently and have complete individual business functions
Horizontal Organizational Structure: Characteristics, Advantages, Disadvantages
What's it: A horizontal organizational structure is an organizational structure with few hierarchical layers and a wide span of control. It emphasizes an employee-centered approach by promoting teamwork and collaboration. Sometimes, we also call
Vertical Organizational Structure: Characteristics, Advantages, Disadvantages
What's it: A vertical organizational structure is an organizational structure with many managerial hierarchies. Organizations involve many middle layers as intermediaries between top management and bottom management. The chain of command is
Downsizing: Importance, Reason, Type, Pros, Cons
What's it: Downsizing is a company's strategy to reduce the size and complexity within their organization. It involves reducing employees making the company smaller by laying them off. Companies may delete job titles or eliminate overlapping
Multidivisional Structure: Importance, How it Works, Pros, Cons
What's it: A multidivisional structure (M-form) is an organizational structure with a complex design and multiple divisions or strategic business units, each managing the business independently. This structure allows the company to grow through
Delayering: Importance, How it Works, Strengths, Disadvantages
What's it: Delayering means removing a management layer, often targeted at those between the top and bottom layers. In other words, the target is middle management. As a result, the organizational structure becomes flatter with shorter
Bureaucracy: Importance, How it Works, Advantages, Disadvantages
What's it: Bureaucracy is an organizational arrangement based on a legal and formal authority system, run by following strict and impersonal rules. Companies typically have multiple layers with a clearly defined chain of command.Management
Centralization: Importance, How it Works, Determinants, Pros, Cons
What's it: Centralization is a hierarchical decision-making structure in which company executives retain authority and have full control over decision-making. It contrasts to decentralization, where upper management delegates it to lower levels
Accountability: Importance, Examples, Components
What's it: Accountability means carrying out roles and duties responsibly as they should. It can apply to other individuals, departments, companies, or organizations. And let's focus on its application in enterprise management.When an