Simple Structure

By: Xi Chen

Simple Structure

What is simple structure? 
Simple structures are the most common form of organizational design, mainly because there are more small organizations than large ones. These structures have a low degree of departmentalization and also a wide span of control. This is not substantial enough to have the high degree of formalization and only have the very basic differences in work specialization. The authority of this small group is largely centralized in one person. Generally, simple structures have only two or three levels, the flexible set of employees and the person who has the power of decision-making. This simple structure is predominantly used in small business settings in which manager and owner happen to be the same person. However, as far as the business grows, the coordinating efforts on the part of the owner or manager will become more complex. 

What are the advantages of Simple Structure? 
Its advantage is simplicity. This will make the small group of people more responsive, fast, accountable and easy to maintain. The simple structure is becoming more and more popular because of its flexibility, responsiveness and high degree of adaptability to change. Also, in a simple organizational structure, decisions often occur quickly because owners and managers have knowledge about the entire business, so the problems will be solved both easily and quickly. "Owners and managers can also choose what products to produce or the business relationships that will best advance the company's mission"(Daniella). There exist advantages and of course disadvantages, so what are the disadvantages of Simple Structure? Daniella said that the small businesses or other organizations operating under a simple organizational structure may find it difficult to run operations in the absence of the owner or primary manager. It may be difficult to get timely feedback on complex business operations in this structure. However, employees may not understand their responsibilities because of lack of specialization.

What is the general applicability of simple structure? 
"The simple structure is most widely practiced in smaller businesses, in which the coordination of work can be effectively structured around a narrow set of activities and decision makers, who are able to coordinate activities quickly and effectively" (Sree, 2008). When the size of the company and the environmental complexity increase, the top of the simple structure will get overloaded with the information. "The information overload will compromise the effectiveness of the decision-making performed at the organizational top. It will also make the organization slower in its adaptation to new situations" (Sree, 2008). The growing companies need to specialize in the changing and dynamic environments, they have to specialize and formalize their own organizational structures, so like Sree said, the work must not be as heavily coordinated by the organizational top (Sree, 2008). Indeed, companies need to divide the goals into subtasks and employ the proficient employees to responsible for the given subtask previously handled by the company owner. Finally, companies have to decentralize some of the decision-making power to lower level employees of the organization, so that the decisions will be made by people responsible for the subtask, and who control specific knowledge and information about the handling of the given subtask.

There are many other forms of simple structures that are very familiar, like Line commodity simple organizational structures, Division-style simple organizational structures, and Flat structures. Line commodity simple organizational structures have various lines for entire business activities. For example, different lines exist for widgets, cogs, and screws, produced by a single manufacturer. Below the director or manager position reside all other employees. Division-style simple organizational structures are almost the most common constitutional structure for smaller businesses. Owners can transform or alter the company impartially and simply, as no units stand in the way of shifting branches or combining them with one another. In fact, there is much more owner control in this exceedingly flat organizational structure. Because these organizations have hardly any administrators other than the owners, Flat structures are usually common in small firms. This oversimplified structure allows for reductive bureaucracy and more information for the owner. This form also helps to improve the firm's consciousness of the marketplace and restraint clamping operations with plenty of servants. 

Last but also important, the characteristic of simple structure can best be defined by what it is not rather than by what it is. The simple structure is not complicated. It has a low degree of departmentalization, wide spans of control authority centralized in a single person and little formalization. "The simple structure is a 'flat' organization it usually has only two or three vertical a loose body of employees and one individual in whom the decision authority is centralized". (Sree, 2008)

References

Alexis. Different Types of Organizational Structure. Retrieved from:http://smallbusiness.chron.com/different-types-organizational-structure-723.html

Daniella, L. The Simple Structure of an Organization. Retrieved from:
http://www.ehow.com/facts_7215856_simple-structure-organization.html 

Sree, R.R(2008) The simple structure and bureaucracy Retrieved from:
http://www.citeman.com/3954-the-simple-structure-and-bureaucracy.html