ABSTRACT
Unlike financial and human-resource management, structuring organizations is not guided by a set of universally accepted best practices. Rather, management must make structural decisions based on the best fit for their organization. Management must ask and answer six structural questions. First, how rigidly should employees follow a chain of command? We discuss situations where both strict and loose adherence is appropriate. Second, how rigidly should unity of command be maintained? Although preferred at the scene of an emergency, it does not guarantee success. Third, what should be appropriate supervisory spans of control? One glove does not fit all hands. Fourth, to what extent should an organization centralize or decentralize? While providing autonomy to field agencies, decentralized operations require a measure of managerial oversight. Fifth, how can the mutual discontent between staff and line agencies be mitigated? The CEO should create a cooperative, mutually respected, team-based culture. Finally, which of the eight structures (wheel, chain, all-channel, matrix, virtual, intranet, extranet, and physical) should be used under what conditions?
