| It is typical within an organization, though it will | | | | represents how many people or business divisions are |
| depend on its size, to find regional managers (who | | | | at that level relative to the whole. The |
| manage a geographical region that the organization | | | | highest-ranking people are at the apex, and there are |
| operates in), divisional managers (who manage a | | | | very few of them. The base may include thousands |
| particular division within an organization e.g. human | | | | of people who have no subordinates. |
| resources, finance, sales, etc.), and departmental | | | | The benefit of a hierarchal structure is also its |
| managers (who manage the departments within the | | | | primary limitation in that it will reduce the level of |
| divisions). | | | | communication that goes directly to the top. The |
| The way regions, divisions, departments and people | | | | hierarchal configuration, however, is the most |
| link together and interact is set out in a management | | | | prevalent for large corporations, governments, and |
| structure (sometimes also referred to as an | | | | even organized religions. |
| organizational structure). The two main types of such | | | | Flat management structures will typically only work |
| structures are flat and hierarchal. | | | | well in smaller companies, or within smaller defined |
| Organizations that have few or no levels of | | | | units of a large organization. Once an entity reaches a |
| management that intervene between the workers | | | | certain size, this type of structure will not work as |
| and the leaders are employing what is known as a | | | | well and could end up having a negative impact on |
| flat management structure. A flat management | | | | productivity. Certain financial responsibilities may also |
| structure promotes the involvement of staff in the | | | | require a more conventional structure, and some |
| decision-making process by decentralizing said | | | | theorize that flat organizations become more |
| process. | | | | traditionally hierarchical when they begin to be geared |
| A flat management structure can help to speed up | | | | towards productivity. |
| decision-making, as it promotes real-time suggestions | | | | An organization's complexity can be related to its size |
| and commentary from the front-line workers, and | | | | and how widely distributed it is geographically, and it |
| eliminates middle-management. This structure | | | | is this complexity that governs which management |
| promotes frequent communications and results in a | | | | structure is most beneficial to it. In that respect, |
| more personal relationship between staff and leaders | | | | there is no straight answer as to which management |
| of the organization. | | | | structure is best overall. |
| Within a hierarchal management structure each | | | | Whichever management structure is implemented |
| person is charged with reporting to, or dealing with, a | | | | need to be regularly reviewed to ensure that an |
| specific manager, who then takes information up (or | | | | organization and all of its subsystems (processes, |
| down) the chain. In this structure, each body within | | | | departments, teams, employees, etc.) are working |
| the organization, except one, is subordinate to an | | | | effectively to achieve the results desired by the |
| immediate supervisor. | | | | organization. Such reviews (referred to as |
| Such a structure is best visualized as a pyramid, | | | | performance management) can be carried out on a |
| where the height of a person depicts their status, | | | | general basis, or on units of performance, such as |
| power and influence, and the width of that level | | | | quantity, quality, cost or timeliness. |