Deliverable 3 - NoJax Structure Analysis

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The three most common organizational structures are the simple structure, the bureaucracy structure, and the matrix structure. Each provides a company with different benefits and risks. Each also impacts the behaviors of the employees differently. Making the right decision regarding which structure to implement can be tricky. There is no single correct choice for every situation. Structures must evolve and adapt to suit the business. Management has to be aware of the company and employee needs, and make the choice that best fits their business at the time.

Read more to learn about simple structure, bureaucracy structure, and matrix structure.

1. Simple Structure

 

The simple structure is typically seen in smaller businesses searching for a simpler way to design the company. There are very few layers of management and wide spans of control for the employees. Most of the power is centralized on a single person, such as the owner. It allows for fast decision-making. Typically, this is where a business starts when they're first getting going. It frees up employees' behaviors and lets management see what they have in terms of employee attitudes and skills. These can all be great benefits as long as the business doesn't outgrow the simple structure strategy. Expanding businesses will quickly need more complex structures to deal with new needs and mold employee interactions.

2. Bureaucracy Structure

 

The bureaucracy structure (also called functional structure) focuses on preparing employees to specialize in routine tasks. This usually means creating functional departments where every employee in a group has similar knowledge and responsibilities. Businesses will create departments, such as finance, marketing, and human resources, where everyone in the chain of command has an understanding of the department that they work in. Advantages of this structure include limiting the hiring of unnecessary employees and fostering the ability to specialize in a specific function due to working alongside peers involved with the same aspect of the company. The downside is that this can wall departments off from each other. Employees in the marketing department, for instance, are never quite sure what their coworkers in other departments are doing because they only interact with other employees involved with marketing.

3. Matrix Structure

 

The matrix structure is a combination of functional and divisional structures. Employees have a manager for their functional department as well as a different manager overseeing the project that they're currently working on. Within that project team, there will normally be people from many different functional departments. This allows for a very flexible business that can communicate quickly. It also overcomes the walled off communication that becomes an issue with the bureaucracy structure. However, the presence of extra managers makes this structure more expensive to maintain. There can also be power struggles between the functional and project managers leading to stressed employees and unclear communication.