An organizational structure is a system that describes how certain activities are directed to achieve the goals of an organization or a business. These activities may include rules, roles, and responsibilities. If you are planning to establish your business in the United Arab Emirates and also want to plan an organizational structure then we at Start Any Business consultants are here for you to help you in this process and make it very smooth and hassle-free.
The organizational structure also determines how information flows between levels within the company. For instance, in a centralized structure, decisions flow from the top to the bottom, whereas in a decentralized structure, decision-making power is distributed among different levels of the organization.
Types of Organizational Structure
There are four types of common organizational structures are implemented in the real world.
1. Functional Structure
The first and most common is a functional structure. This is also known as a bureaucratic organizational structure and breaks down a company based on the expertise of its workforce. Most small to medium-sized businesses in the UAE implement a functional structure. Dividing the firm into marketing, sales, and operations departments is the act of using a bureaucratic organizational structure.
2. Divisional or Multidivisional Structure
The second type is common in large companies with multiple business units. Called a divisional and multidivisional structure, a company using the method forms its leadership team based on the products, projects, or subsidiaries they operate. With thousands of products and lines of business, the company structures itself so that each business unit acts as its own company with its chairman.
3. Flatarchy Structure
Flatarchy, a new structure, is the third type and is used among many startups in the UAE. as the name suggests, it flattens the hierarchy and chain of command and gives a lot of autonomy to its employees. The UAE companies that use this type of structure have a high speed of implementation.
4. Matrix Structure
The fourth and final organizational structure is a matrix structure. It is also the most confusing and the least used. This structure matrix the employees of different superiors, divisions, or departments. For instance, an employee working for a UAE matrix company may have duties in both sales and customer service.
Benefits of Organizational Structure
Establishing an organizational structure can be very beneficial to a company. The structure not only defines the hierarchy of the company but also allows the firm to lay out the salary structure for its employees. By establishing the organizational structure, the firm can decide the pay grade and category for each post.
The structure also makes the operation more efficient and effective. By separating employees and tasks into different departments, the company can seamlessly perform various tasks at once.
In addition, a very clear organizational structure informs the employees how to perform their jobs in the best possible way. For instance, in a hierarchical organization, employees will have to work harder to favor or attract people with decision-making power.
In a decentralized organization, employees must take more initiative and creative problem-solving. It can also help set expectations for how employees can track their development within a company and emphasize a certain set of skills – as well as a way for potential employees to figure this out. As to whether such a company would be a good fit with their own interests and work styles.
How we can help you
Start Any Business is a leading business setup consultancy that helped many clients to establish the business in Dubai, UAE. We have a team of qualified professionals who have years of experience in this field. Our skilled professionals assist our clients with the right guidance and give them the best solution for the right decision.
If you looking to start a business in Dubai, UAE then our experts at Start Any Business will help you from beginning to end. We provide you the best services related to an organizational structure, according to your requirements and help to make your business successful with profit pursuits in a short possible time. So, if you are interested then feel free and contact us today, we would glad to assist you.