| ESP 1 Le Hong Linh( MA) Tel: 0903. 978. 552 Email: Unit 1 Company Structure What is company structure? The way in which the parts of a company are connected together, arranged or organized. How are most organizations structured? They are structured in several ways that best suit their plans and objectives such as where to locate the factory, what products should be manufactured, how those products should be made, who should be responsible to whom and how the company’s resources are to be used to achieve the best results. How many types of structure are there? Line structure Matrix structure Functional structure Staff structure 1. Pyramidal structure This is sometimes called a hierarchical or line structure with final approval on decisions affecting the operations of the company still coming from the top down and it shows the direct lines of authority or chain of command in a pyramidal shape. It is most often used in small organizations – such as small accounting offices, law firms, hair salons, and “mom-and-pop” stores Advantages Line structures are clear and easy to understand for those working in them. The president or CEO can easily provide information and direction to subordinates, thus allowing decisions to be made quickly. Lines structures are fairly informal and involve few departments, making the organizations highly centralized. Disadvantages People in the company become ‘departmentalized’. Line structures would not suitable for large companies. The president is often responsible for wearing many “hats” and being responsible for many activities, but she/he cannot be an expert in all areas. People at lower levels are unable to make important decision, but have to pass on responsibility to their boss. 2. Functional structure The company is divided into departments such as production, finance, marketing, human resources. Employees within the functional divisions perform a specialized set of .