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Organizational Structures and the Bottom Line

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I am meeting with other department members and the topic will be the about the differences in organizational structures and how they can impact a company's bottom line.

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Good question! Please see response attached (Posting 54129) (ALSO BELOW), including two relevant articles for your consideration.

Good luck with your continued studies and take care.


This is an interesting question, indeed. But what makes it somewhat complex is that different authors have different names for different types of organizational structures. As well, the work task also impacts the type of organizational structure that will be most efficient, and thus, affect the bottom line in a positive direction.

However, in general, in today's society the more flexible the organizational structure, the better the bottom line.

1. Pre-bureaucratic

Pre-bureaucratic structures lack standardization of tasks. This structure is most common in smaller organizations and is best used to solve simple tasks. They have a very flat hierarchy and most communication is done by one on one conversations. They are usually based on traditional domination or charismatic domination in the sense of Max Weber's tripartite classification of authority.

This can impact the bottom line negatively, especially in today's society, where there is move towards the need for team work, effective communication across different organizational levels, etc. However, for the smaller business, this may still be effective, and effect the bottom line positively. Fewer and fewer of these types of businesses are present today, ...

Solution Summary

This solution discusses the differences in organizational structures and how they can impact a company's bottom line. Supplemnted with two articles on participatory leadership and a leadership pyramid of abilities and skills.