3 types of organisational structures

Hello readers, I hope you all are good. Today I will be writing about 3 types of organisational structures. The types I will be writing are functional structure, matrix structure and the entrepreneur structure.

An organisation could be defined as a group of people that have the same goal. This goal is defined by the company they work for. When two or more people come together to achieve the same results, an organisation has been formed. Organisations have been around for years. Its types are discussed below:

Functional structure

The functional structure is usually represented with a triangle. The chief executive officer is always at the top of triangle with the reporting line of their surbodinates flowing beneath vertically.  This structure is the mostly used one.

Employees are grouped according to the function they perform. For example the people that carry out finance tasks will be grouped in the same department, they will be to reporting to the head of department (finance manager) whom, in turn will report to the chief executive officer. 

Furthermore, employees could also be grouped by the product they make, they report to the product manager whom in turn reports to the chief executive officer. Employees could also be grouped by geographical location as most companies have branches in different regions.

An organisation whose structure is functional can be tall or flat, with the tall having many levels and the flat having fewer levels.

Matrix structure

This structure was formulated due to challenges faced by the companies that used  the functional organisation structure. Instead of an employee  reporting to one manager which occurs with the functional structure, he/she reports to two or more managers. For example a human resource staff will be reporting to the human resource manager as well as a finance manager whom will  be involved when employing a finance staff.

Entrepreneur structure

This type of structure is used by smaller companies like a sole-proprietorship business or a company with few partners. The decision on what work to be done, how the work should be done and whom does the job is made the owner(s) of business or the people that controls the business. The structure is simple, informal and can be changed on a daily basis. Employees could be told to carry two or more tasks. For example, someone that carries  out receptionist duties could also be told to carry out cooking duties in a bed and breakfast accommodation business. The structure is good for small businesses, however, when the business starts growing it will be challenging to use.

Make sure your business is halal. Everything should be done seeking the pleasure of Allah. Part of seeking the pleasure means hoping for a reward from Him in this life and the Hereafter. Everything happens according to the will of Allah (you have freewill, therefore, you are responsible for your actions).

Halal means anything lawful Islamically.

Alhamdulillah (Praise be to Allah). May Allah send peace and blessings to Prophet Muhammed (P.B.U.H). Thank you for reading this article. Like this page on facebook. Keep reading this blog regularly. Cheers!