Types Of Management Structure

Management is basically all about organizing and when you talk about different types of management structure you are also talking about different types of organizational structures. In every company and/or corporation the types of management structure varies and that is because of the type of work involved or the size of the business and also because of the nature and types of employers in the corporation. Some employers are more lenient, friendly and open as opposed to others who prefer a formal and disciplined way of running a corporation. This is also why there are many types of management structure.

One of the newest types of management structure is the one where everyone is treated equally and every individual is considered to be just as important as the next one. Together the employees’ strengths are combined so that the organization can benefit and reach new heights. No one is subordinate to anyone because everyone contributes to the company and its benefit in their own way. This is a concept that has recently developed and so these types of management structure do not exist everywhere though many businesses do have elements of it incorporated into their management structure.

Hierarchical management structures are one of the most traditional types of management structure whereby as you move along the structure, each person higher up in the structure is more senior to the previous one and as you get promoted your management responsibilities increase though you get paid more too. The highest post in these types of management structure is that of the Chief Executive Officer who handles a lot within the business. Basically, he has to give his approval before anything can be done in the office. If a department needs to order something, he/she has to approve of the order. If someone needs to hire a new employee, the CEO has to be contacted to give his approval. The CEO watches over the entire company in these types of management structure.

Then you’ve got the matrix types of management structure and in these structures there are 3 types of matrix structures. Predominantly, these structures are divided into product and function. The first of the three types of management structure is the weak/functional matrix in which the project manager has limited control and just oversees the cross-functional parts in the projects while the functional manager has control over the resources and certain areas of the project. Then, there’s the balanced/functional matrix in which the two managers have equal control but this sharing of power can make things a little difficult. Strong/project matrix types of management structure is one in which the project manager has most of the control while the functional manager has control over technical parts of the project and handles the resources.

All of the types of management structure mentioned above have their own advantages. In larger organizations the hierarchical structure may be more predominant, successful and helpful while in medium-sized businesses the team management structure may be preferred and better for progress instead.