A Cobweb Organizational Structure

As market conditions and stages of development change, companies will take on different organizational forms. Small startups need a flat and flexible organizational structure to solve simple problems quickly, with little need for standardization and specialization. As the organization grows in size and business processes become more complex, it is important to define the responsibilities, rights, and benefits of employees, and a hierarchy emerges. The hierarchy system requires that employees, no matter at which level, must strictly comply with corporate rules and regulations to ensure the overall efficiency of the organization. Strict hierarchical management leads to an ultra-stable structure, resulting in organizational inertia and rigidity, and when the external environment changes and market volatility increases, it will be difficult for the organization to adapt. At this point, the organization needs to break through the original strictly defined hierarchy and achieve cross-departmental and cross-process collaboration through total quality management, culture management, and matrix management.