Corporate Structure for Businesses

NOTES

Principles of Effective Companies

•There is a clear reporting relationship for ALL staff

•The right to make decisions about how to complete work

•The number of employees assigned to a particular task or manager•A large number with little support will not be effective

•Responsibility- The obligation to complete work

•Accountability – Taking responsibility for result achieved from work

Responsibility &

Accountability

Span of Control

Unity of CommandAuthority

Types of Corporate StructuresFunctional

• Most businesses use this• A top down approach to

organizing• All people with related jobs

work together• Advantage • People work with others

who have the same skills• Disadvantage• People become focused

on their function rather than the success of the whole company.

Matrix• Newer structure designed

to overcome drawbacks of Functional

• Work is structured around Projects

• People with different skill sets come together to work on specific project tasks

• May be temporary or long-term

• Advantage• Can be interesting and

motivating to employees• Disadvantage• Can be confusing and

change the chain of command

Functional

Matrix

Assignment

Many schools are organized using a functional corporate structure. Teachers are organized into departments such as English, Math, Science, etc.

How could MVHS be organized using a Matrix Structure? Design a structure that illustrates our school with a matrix structure. Describe the disadvantages and advantages of applying this at MVHS.