Organizational structure is defined as "the pattern or arrangement of jobs and groups of jobs within an organization" (Encyclopedia of Small Business). Every business should have a defined organizational structure that aids in achieving goals set during management planning. Different organizational structures exists, therefore, businesses must choose and use the organizational structure that works best for their company. For example, the organizational structure for a large business may differ from the structure of a small business. Recognizing and using the organizational structure needed for a business to enjoy long-term success should be carefully considered before making organizational decisions. Comparing and contrasting the various organizational structures will provide a better understanding of the importance of choosing the structure best suited for a particular organization.
Small businesses generally do not require a large scale organizational structure. A good example is the Parent-Teacher Supply Company. The Parent-Teacher Supply Company is a sole proprietorship business that provides various educational supplies, art and crafts, and Christian materials.
Purchasing supplies from various suppliers and manufacturers, the Parent-Teacher Supply Company stocks a large supply of books, compact discs, and educational toys. The Parent-Teacher Supply Company supplies are used by churches for Sunday school lessons and Vacation Bible School materials, by schools to support the state mandated curriculum, by parents to reinforce the curriculum taught in school and for home-schooling purposes, and by daycare providers to teach the fundamentals of education. The Parent-Teacher Supply Company opened its doors in 1990 in Yorktown, Virginia. Three years ago, a new location opened in Newport News, Virginia (a neighboring city of Yorktown) which is a small business with one owner, one manager, and seven employees. The organizational structure for such a business does not need to be complex.
Of the two types of organizational structures, vertical and horizontal, The Parent-Teacher Supply...