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A product is a tangible item that is put on the market for acquisition, attention, or consumption,
while a service is an intangible item, which arises from the output of one or more individuals.
Although it seems like the main distinction between the two concepts is founded on their
tangibility, that is not always the case. In most cases services are intangible, but products are not
always tangible
What does company structure mean? Company structure is a system outlining how the activities are
organized and directed to achieve goals. These activities will generally include the rules to be followed
and the roles and responsibilities of those within the company.
Without a formal organizational structure in place, it can prove difficult and confusing for an
organization. An example would be when employees are not certain who their immediate supervisor
is. It can also lead to confusion about who is responsible for each job in the organization.
An organizational structure within a company supports and promotes efficiency, inspires better
production, and provides clarity for each employee at every level. In traditional organizations, the
structure was a centralized leadership with an established chain of command. The military is a perfect
example of a centralized structure within an organization.
There are also decentralized structures. The difference between the two is that in a centralized
structure, the majority of the decision making and control of departments/divisions is through a top
layer of management members. A decentralized structure promotes the distribution of power among
the departments and division. This allows for different levels of independence.
Functional/Bureaucratic
Flatarchy
Matrix
Functional/Bureaucratic
This is the most common organizational structure. It breaks up a company according to the specifics
and specialization of its workforce. This means the enterprise is divided into departments, such as
sales, operations, and marketing. A functional/bureaucratic organizational structure is used mostly
with small and medium-sized businesses.
Flatarchy
A flatarchy is a new structure used in many startups. With this structure, the traditional chain of
command is not in effect. Instead, the company allows its employees to have more autonomy. The
Johnson & Johnson company is a good example of a flatarchy. Within the enterprise, there are
thousands of projects and product lines.
Matrix
The matrix structure is the least used because it tends to be confusing since employees are
"matrixed" across different departments, divisions, and superiors. Employees in a matrix structure
may find themselves working and responsible for duties in different departments, such as customer
service and sales.
Job descriptions
Recruitment
Salary
Expansion
Job Descriptions
Job descriptions in an organizational structure are designed to meet the goals of the company while
promoting employee growth. The focus on internal equity and employee retention is one of the keys
to success.
Recruitment
For organizations, recruitment is a major area for investment. By focusing on this area, employees
have more opportunities and greater job security. This results in lower recruitment costs.
Salary
A fundamental step in an organizational structure is the creation of salaries. Once the structure is in
place, each job description will have salary ranges applicable to each job in the company. For the most
part, each job within the company is aligned to a salary grade. Each salary grade has a specified range.
Following this structure enables a company to attain its financial goals and ensures that salaries are
fairly distributed within a set budget.
Expansion
When a business using an organized structure expands, it can grow and move forward. Expanding an
enterprise may include adding more layers of management, creating new divisions, and increasing key
functional areas. When a company structure reorganizes for expansion, it provides the opportunity
for the company to edit salaries and job descriptions. This means the company operates on its own
under the leadership of an assigned president.
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including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.