Creating an Effective Organizational Structure for Business Managers

Organizational structures are essential for companies of all sizes, as they define the hierarchy within the organization and determine who does what. A successful organizational structure should be planned for the future, and should take into account employee data and metrics. It is also important to practice strong employee performance management. In a decentralized organization, employees must take more initiative and provide creative solutions to problems.

An organizational structure is a system that describes how certain activities are directed to achieve the objectives of an organization. For example, in a hierarchical organization, employees will have to work harder to get favors or court those with decision-making power. Companies can use these organizational structures to help define their hierarchy and support their business objectives. A flat hierarchy is an organizational structure that flattens the way in which authority and tasks are assigned, by eliminating higher levels of management.

A circular structure works with leaders and department heads who have access to all managers at a lower level, in all functions. With EX25, management can comprehensively understand the employee experience and where to focus and direct employees to make an impact. It is important to ensure that all employees respect and support the people around them by facilitating sessions on valuing cultural diversity, managing labor disputes, and managing time. Organizations must also offer the people involved in the matrix the space and freedom to analyze their experiences, both individually and collectively, and the flexibility to reorganize when necessary to put into practice what they have learned.

Establishing the organizational structure also allows staff to set grades and salary ranges for each position. As a large company with more than 200 business units and brands that operate in sometimes very different sectors, each one operates independently. Establishing a matrix can help the organization achieve objectives such as eliminating existing silos or relieving pressure on internal resources. Flat structures can be useful in a startup, where each employee performs many activities and works together to get things off the ground.