What kind of organisation

In a team-based organizational structure, employees are grouped into skills-based teams to work on specific tasks while all working toward a common goal. Often, this is a flexible structure that allows employees to move from team to team as they complete projects. This structure focuses on problem-solving and employee cooperation. Increasing flexibility by focusing on experience instead of seniority.

A circular organizational structure relies on hierarchy to depict higher-level employees within the inner rings of a circle and the lower-level employees along the outer rings. Seated at the center of the organization, leaders do not send orders down the chain of command, but rather outward.

While many of the other structure types contain different departments that work independently with individual goals, this structure removes that strict separation and looks at the bigger picture with all departments being part of the same whole.

Collaborating amongst departments, rather than separation. In a process-based structure, the organization is designed around the flow of its processes and how the duties performed by its employees interact with one another.

Instead of flowing from top to bottom, this structure outline services from left to right. An executive at the top of the structure oversees the departments below, which represents the different processes, but each process cannot start until the one before it has finished. And each department will have its own management and team working to fulfill their duties so that the business can move onto the next task and eventually reach its ultimate goal, such as selling a product to consumers.

Find jobs. Company reviews. Find salaries. Upload your resume. Sign in. Career Development. What is an organizational structure? Hierarchical structure. Establishing clearly defined levels of authority Promoting teamwork and department loyalty Fostering employee development and promotion opportunities. Limiting collaboration Restricting innovation Creating bureaucracy that must be managed. Functional structure. Establishing clearly defined roles and expectations Facilitating improved performance and productivity Allowing for skill development and specialization.

Matrix structure. Enabling a flexible work environment Fostering a balanced decision-making process Promoting open communication and shared resources across the business. Creating confusion about authority Tracking budgets and resources can be difficult Limiting efficiency of key performance indicators KPIs. Flat structure. Reducing budget costs due to lack of middle management Building relationships between staff and superiors Facilitating a quicker, easier decision-making process.

Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Most new businesses start out as sole proprietorships.

This is the simplest form of ownership for a sole owner and requires little more than a tax ID number. However, when there are concerns over taxation or liability issues, or when the business has multiple owners, other organization types should be considered. Which organization type is best for your business depends on a number of factors, including the type of business it is, the number of owners it has, and the degree of concern over taxation and liability issues.

A partnership is a straightforward business organization type to create. It requires an agreement that may be verbal or written. In a partnership, the owners manage and control the business, and all revenue from it flows directly through the business to the partners, who are then taxed based on their portions of the income.

The partners are personally liable for all debts and any liabilities that result from the operation of the business. The sole proprietorship and the partnership are the most straightforward business organization types.

When one partner leaves the business, it is dissolved unless there is an agreement in place that allows it to continue. The same agreement should provide for the transfer of a deceased partner's share so that the surviving family members receive fair compensation from the remaining partners. The creation of a limited liability company LLC requires an operating agreement and a state filing of articles of organization.

Like the principals in a partnership, the owners of an LLC have direct management control over the company, and the company is required to file an information return to the IRS. The owners file their own individual returns based on the revenue that flows to them directly through the business. The information return shows how much revenue was paid to each partner.

The primary difference between a partnership and an LLC is that the latter is designed to separate the business assets of the company from the personal assets of the owners. That insulates the owners from personal responsibility for the debts and liabilities of the company.

Here are some of the main reasons why it's important to understand the different types of businesses you can choose from:. The cost of setting up a company can become a challenge early on, so it's important to be prepared.

Choosing a business type that can accommodate both your initial budget and future growth objectives is essential when setting your business up for success. If limiting risk and liability is an important factor for you, knowing the types of business that minimize exposure can be crucial for protecting your assets. A company's taxation level and structure can vary depending on your chosen business type. Knowing the available types of businesses allows you to choose the one that works best for your company and yourself.

Some business types have additional legal and reporting obligations that may require your time and money, so it's important to familiarize yourself with your options and their specific requirements. Before you decide what form of business organization to choose, assess your company to determine its more general business type. Depending on what you sell, there are typically three different types of businesses:.

These businesses do not sell tangible products. Instead, they offer their professional expertise in various matters, such as providing advice and performing specialized tasks for their customers. For example, schools, law firms and nail salons are all service businesses.

Merchandising businesses purchase large quantities of products at reduced prices and sell them individually at retail price without changing their initial form. These companies make a profit if the amount of money they receive from reselling purchased products exceeds the purchase price and business operating costs.

Some examples of merchandising businesses are grocery stores and clothing stores. These businesses purchase various raw products and then combine and manipulate them to create a new product that they can sell. The process involves combining raw materials, technology, human labor and overhead costs to create a manufactured good that can be sold to customers.

If the price of the sold manufactured goods exceeds the combined costs of production, the company turns a profit. For example, automotive companies and bakeries are both manufacturing businesses. Once you have established what kind of business you plan to run, you can choose the form of business organization and ownership that works best for your goals. The major types of business organization are as follows:. A sole proprietorship is a type of business where there is no legal distinction between the business entity and its owner, so it best fits situations where the organization only has one owner.

They are a popular choice for small businesses due to the low initial costs. Also, any generated income is only taxed once, as opposed to being taxed as a company and then again as a personal source of income. They are also subjected less to taxation and regulation compared to other types of businesses.

However, if your business is a sole proprietorship, there is no distinction between your assets and those that belong to your company, which may be an issue if your company experiences financial challenges. Read more: What Is Sole Proprietorship? Definition, Advantages and Disadvantages.