Types of organizing structure
Organization: An organizational structure is out line
Of company’s framework and guidelines for managing’
Small business owner are responsible for creating their
companies organizational structure.
Two types of organization structure are found in
business environment centralized , Decentralized.
Centralized organizational structures the power of
decision making is in the hand of one manager.
Often small structure because the owner is responsible
for the company business operations.
Advantages of Centralized
1) Centralized organization structure is efficient
regarding to business decision
2) Business owners typically develop the company’s
mission and vision and set objective for managers
and employee for follow
Disadvantages of Centralized
Can suffer several disadvantage.
Business owners responsible for making every decision
in the company may require more time to complete the
task which result sluggish business operation.
Decentralized organizational structure
have several individual responsible for
decision making and running business
operations, decentralized organization
rely on a team environment at different
Advantage of Decentralized
Decentralized organizational structure utilize
individual with a variety of knowledge for running
Various business operations.
In Decentralized organization structure different
individual have different opinions about business decision
therefore business face difficulties In when making
Participative Organization structure
The type of organizing In which
both centralized and decentralized
decision are included
Business organization should consider carefully which
organization structure should be used in company.
Small organization used centralized organizing
Large organization use centralized organizing