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19 December, 16:12

David and Laura are planning an e-commerce company for business travelers. They want to be sure that all the employees have a wide scope of decision-making authority. Which kind of organizational structure is most appropriate for this kind of work?

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  1. 19 December, 16:26
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    The organizational structure that is most appropriate for this kind of work is the flatarchy organizational structure.

    Explanation:

    An organizational structure is a systematic approach towards how the human resource is are divided in specific groups according to their roles, responsibilities and authority.

    There are different types of organization structures available that include; functional, divisional, matrix and flatarchy. Each of these structures can be further explained as shown;

    1. Functional: In a work environment where each worker has a different roles in the organization, the functional structure is important in taking these workers and putting them into groups according to their roles.

    2. Divisional: this type of organizational structure is useful in very large companies that provide a multitude of unique products or services. It is therefor important for these company's structure to be divided into units that former separate smaller companies that operate independently from the others.

    3. Matrix: this is a blend of the functional and projectized organizational structure. It combines some elements of the functional and some elements of the projectized organizational structure. In this structure, employees might report to two or more bosses depending on the project.

    4. Flatarchy: this is a blend of a flat structure and a functional structure. It offers a broader decision-making authority to the employees. It prevents a hierarchical appearance of an organization. It is often used in innovation or creative projects where each employee is encouraged to participate and give insight to the project.
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