1. The simple organizational structure is most often used by small businesses. Generally, you have the business owner or boss and the employees. There are no departments, department heads or middle level managers. It's a simple, flat configuration.
2. Because the organization is small, employees provide all of the necessary functions, such as human resources, customers service, accounting and IT. All employees report to the business owner.
3. Benefits: This simple organizational structure is highly effective for small organizations. All employees report to the owner and the owner makes the necessary decisions to run the company. Because there is no middleman, decisions are made quickly and the business can run smoothly.
4. As small businesses grow and bring on new employees, the simple organizational structure is no longer adequate. The business owners must start delegating management and decision-making responsibility to other individuals or team members. From this point, the simple organizational structure will evolve into a traditional hierarchical organization structure, matrix, networked, virtual or another format, depending what's required to maximize productivity.
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1. The simple organizational structure is most often used by small businesses. Generally, you have the business owner or boss and the employees. There are no departments, department heads or middle level managers. It's a simple, flat configuration.
2. Because the organization is small, employees provide all of the necessary functions, such as human resources, customers service, accounting and IT. All employees report to the business owner.
3. Benefits: This simple organizational structure is highly effective for small organizations. All employees report to the owner and the owner makes the necessary decisions to run the company. Because there is no middleman, decisions are made quickly and the business can run smoothly.
4. As small businesses grow and bring on new employees, the simple organizational structure is no longer adequate. The business owners must start delegating management and decision-making responsibility to other individuals or team members. From this point, the simple organizational structure will evolve into a traditional hierarchical organization structure, matrix, networked, virtual or another format, depending what's required to maximize productivity.
5. Read more: http://www.ehow.com/facts_6892377_simple-organizat...
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