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Organization structure is defined as the way that an organization arranges its employees and management so that efficient work can be performed and it can meet its targeted goals.2 When an organization is small, a sole proprietorship or partnership where face-to-face communication is frequent, formal structure may not be necessary. In a larger organization such as a corporation or limited liability company, a more defined structure must be utilized, as decisions have to be made about the delegation of various tasks. As a result, management procedures and structure are established to assign responsibilities for essential functions. These decisions and procedures determine the organizational structure within the organization. There are several organizational structures that can be implemented by organizations. These organization structures are classified in two different categories: traditional and contemporary.
The following sections will explain these organizational structures and provide a look into their advantages and disadvantages. The first section will address traditional organization structure along with the advantages and disadvantages. The second section will address contemporary organizational structure along with the advantages and disadvantages. The third section will compare and contrast the traditional and contemporary organization structures. Then concluded by addressing emerging and potential future organization structures that managers might need to handle in the future.
Traditional Structure
At the beginning of the twentieth century in the United States most organizations in the industry were forced to take on the idea of mass productio ...