The other day in class we were discussing different types of organisational structure and we got discussing the very informal structure used in small businesses and in particular sole traders.
This is often called the Entrepreneurial Structure.
Here is a representation of the structure from BBC Bitesize:
What happens is that there are no levels of management. The entrepreneur is the only person who is making decisions, and therefore decisions should be made relatively quickly.
Employees and staff have no quibbles or issues around who is actually the boss, because there is usually only the one head honcho!
There are some difficulties associated with this though, as the entrepreneur may become stressed with having to make all of the major decisions. It also perhaps stifles creativity and input from employees, which is normally to be encouraged and welcomed. This would in turn demotivate staff as they feel isolated and not valued.
LEVI ROOTS IS AN ENTREPRENEUR WHO MAY EMPLOY SUCH A STRUCTURE
Such an informal, entrepreneurial structure is almost impossible in larger organisations, although sometimes in highly creative artistic industries companies attempt to bring this kind of leadership and structure in, with varying effect.
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