Choosing the best organizational structure for your company in the construction industry can be challenging.
In the world of organizational structures, the options you have to choose from include things like chain of command, span of control, centralization, and the list goes on.
What is Organizational Structure?
An organizational structure is a visual diagram of a company that describes what employees do, whom they report to, and how decisions are made across the business. HubSpot reported on 9 Types of Marketing Organization Structures on August 15th, 2019:
Here are 6 Marketing Organizational Structure Types
1. Functional Organizational Structure
The functional structure departmentalize an organization based on a common job. An example of this is the marketers would be together in one department, the salespeople would be in a separate department, and so on.
This type of structure creates barriers between different functions and can also limit peoples’ knowledge and communication with other departments.
2. Product-Based Divisional Structure
In product-based divisional structure, each division is dedicated to a particular product line. This structure is ideal for organizations that have multiple products.
It can be difficult to scale, and the organization could end up with duplicate resources.
3. Market-Based Divisional Structure
In market-based divisional structure, the divisions of an organization are based around markets, industries, or customer types. This structure is ideal for an organization that has products or services that are unique to specific market segments.
Too much autonomy within each market
4. Geographical Divisional Structure
This structure is based on geography. The divisions of a geographical structure can include territories, regions, or districts.
It can be easy for decision-making to become decentralized, and you can run into the risk of creating campaigns that compete with other divisions across your digital channels.
5. Process-Based Structure
Process-based organizational structure is designed around the end-to-end flow of different processes. To understand the diagram below, you need to look at it from left to right: the customer acquisition process cannot start until you have a fully developed product to sell
This structure can erect barriers between the different process groups, which leads to problems communicating.
6. Matrix Structure
Matrix structure is when all employees have dual reporting relationships. When looking at this type of chart, solid lines represent strong, direct-reporting relationships, whereas dotted lines indicate that the relationship is secondary or not as strong.
The key word is complexity. There more layers of approvals employees have to go through, the more confusing it is.
Figuring out what type of organizational structure your construction company should use can be difficult. Leave a comment below on what organizational structure your company uses.