Different types of management structures

On Behalf of | Jan 14, 2021 | Business Structure

If you are about to start a company in Massachusetts or looking to change things up in your current organization, it’s always best to research about the various management structures available to you. It is often the case that the issues revolving around a company are not related to its products nor even its talent but in relation to its management structure. Thus the following includes further information on these structures and how they may benefit your business.

The hierarchical structure

The hierarchical structure is perhaps the most popular and most common management structure in the business community. This structure involves having employees report to one superior. However, there are variations to this. For example, a company that has several locations scattered around the country may have regional supervisors. This means that all those locations will report to that particular person.

Horizontal/flat structure model

If you are about to start your own business, then this is the route to take. In fact, many business law attorneys tend to recommend this model as a means to make operations run more smoothly. This model allows open communication between employees and the owner, with much of that being possible due to the elimination of middle management. This, of course, does not mean that your employees will have no supervisors.

Matrix organizational structure

Companies that have large and complex operations will tend to go towards the matrix organizational structure. This is especially prevalent within businesses that have several employees with specific expertise. A matrix model allows these employees to report to one supervisor but still be able to move around where they are needed. Although they may answer to multiple supervisors, the structure helps to keep confusion and reduction of productivity to a minimum.