The Value of Management Structure

Small Businesses Need StructureOwners/Managers

Supervisors/Team Leaders

Employees

Beyond the BasicsThree types of

structureFunctional

Divisional

Matrix

1. Functional Structure

• Hierarchy based on job roles and departments• Most common

2. Divisional Structure

• Decentralized structure based on regions or products rather than function

• Divisions have their own employees and a leader

• i.e. North, South, West, East regions of the U.S.

3. Matrix

• Combines the functional and divisional structures• More team-based• Each team has a leader• Leaders report to their leaders• Mixes departments together to work toward a common goal

Pick Your Structure

Which is best?Business consulting services can help you decide

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