There are two main types of organizational structures: centralized and decentralized. In a centralized structure, decision-making power is concentrated in one manager, typically the business owner, allowing for efficient decision-making but potentially slowing operations. Decentralized structures distribute decision-making across multiple individuals with specialized knowledge, utilizing diverse perspectives but making consensus more difficult. A participative structure combines elements of centralized and decentralized approaches. When choosing a structure, businesses should consider their size, with smaller organizations often finding centralized works best and larger ones leaning toward decentralized.

1. 1

2. 2

3. Types of organizing structure
 Organization: An organizational structure is out line
Of company’s framework and guidelines for managing’
business operation.
 Small business owner are responsible for creating their
companies organizational structure.
 Two types of organization structure are found in
business environment centralized , Decentralized.
3

4. Centralized
 Centralized organizational structures the power of
decision making is in the hand of one manager.
 Often small structure because the owner is responsible
for the company business operations.
4

5. Advantages of Centralized
1) Centralized organization structure is efficient
regarding to business decision
2) Business owners typically develop the company’s
mission and vision and set objective for managers
and employee for follow
5

6. Disadvantages of Centralized
 Can suffer several disadvantage.
 Business owners responsible for making every decision
in the company may require more time to complete the
task which result sluggish business operation.
6

7. Decentralized organizing
Decentralized organizational structure
have several individual responsible for
decision making and running business
operations, decentralized organization
rely on a team environment at different
levels.
7

8. Advantage of Decentralized
 Decentralized organizational structure utilize
individual with a variety of knowledge for running
Various business operations.
• Disadvantages:
In Decentralized organization structure different
individual have different opinions about business decision
therefore business face difficulties In when making
decision.
8

9. Participative Organization structure
The type of organizing In which
both centralized and decentralized
decision are included
9

10. Consideration
 Business organization should consider carefully which
organization structure should be used in company.
 Small organization used centralized organizing
structure.
 Large organization use centralized organizing
structure.
10

11. If you have any Question please ask……………
11