How to Implement a Corporate Management Structure and Solution

How to Implement a Corporate Management Structure and Solution

Implementing a corporate management structure is essential to the success and coordination of a project. A Management structure not only fosters better interactions but reduces confusion amongst team members as well. Without an organizational structure, disruptions, broken communication and conflict are likely to occur.

When developing a corporate management structure, make sure that you take special consideration of your project needs. Depending on the type of project, number of people involved, and schedule, the management structure should be adjusted. You want to create a structure that fosters the highest amount of collaboration and communication amongst your team, and this will vary between different projects.

First, let’s take a look at the three main types of management/organizational structures.

Functional Structure

• The organization is grouped into different departments according to purpose (e.g., Marketing department, sales department, production department, finance department, accounting department)
• Works best for small businesses

Pros: Each department can support itself and rely on the knowledge of its workers

Cons: Communication and collaboration is more restricted due to organizational boundaries

Divisional Structure

• Organization usually has large geographic scope with smaller groups under its umbrella (e.g, Small engine division, parts division, compressor division, divisions for different geographic areas)
• Works best for larger companies

Pros: needs are met quickly and more specifically

Cons: communication and collaboration is more restricted due to organizational divisions, more costly

Matrix

• A hybrid between functional and divisional structure
• Works best for larger multinational companies

Pros: It gives you the benefits of both functional and divisional structure

Cons: Dual management can cause power struggles (e.g., Functional and divisional manager that have the same level of power can cause issues when managerial territory overlaps)

Another area to consider when implementing your management structure is management/leadership style.

Let’s take a look at the most common styles:

Autocratic

• Authoritarian
• Makes decisions fast
• Base their decisions on their own opinions and experience

Consultative

• Make unilateral decisions
• Take workers opinions into account when making decisions

Persuasive

• Maintain control through indirect means
• Don’t give direct orders
• Rely on persuasion to inspire employees course of action

Democratic

• Almost all levels of employees are involved in decision making
• Relies on two-way communication between employees and management
• Reduces efficiency, but increases employee satisfaction

Laissez-faire

• Hands-off management style
• Managers are seen as mentors
• Employees manage their areas
• More personal responsibility on the employees

No one structure or style is right for every project, so it is up to you to decide the best course of action to take. Remember to take all parts of your project into account. The planning stage is particularly important in creating a management structure that is successful in promoting communication and efficiency, so take your time! Stay flexible and open to new styles and structures, and you might be surprised at how far it will take you.

Sources:

Harvard Business Review

Forbes 

Class Tool Kit Org

Small Business