There is no one best way to organize a company. The strategy, rules, policies, and controls should vary from company to company and may even vary from store to store. One example of this is McDonald’s, which is able to turn around food quickly and consistently across its many
However, other organizations find a looser structure is needed to be successful. The structure should fit the situation. Managers have these six basic options to choose from:
Functional groups based on their knowledge or skills: This usually works best for academic settings, researchers, and engineering groups.
Units based on time: Such as day versus night shifts.
Groups organized by product: A tech company may split up its employees by those who work on smart phones versus those who work on tablets.
Departments based on the client needs: Hospitals, for example, are broken up by the patients they serve (pediatrics vs. intensive care).
Groupings around place: Global organizations may operate differently from country to country.
Units divided by process: If a product or service has various steps, this setup may make the most sense.
The “right” answer for any one organization should be based on what works for the people within it and its purposes.