WHAT KIND OF COMPANY STRUCTURE SHOULD I CHOOCE?
Speaking about company structure, I’d like to say that there are two main types of it. The first is hierarchical and the second is flat. The hierarchical system or organization is one in which people have different ranks or position, depending on how important they are. Companies with a flat structure are organized in less hierarchical way than traditional companies, with the aim of giving all employees an equal status within the company.
The hierarchical system is characteristic for the majority of the companies. Such system is used by the Philips company. Royal Philips Electronics is managed by the Board of Management, which looks after the general direction and long-term strategy of the Philips group. The President is in the head of the Board of Management. The Supervisory Board supervises the general course of business of the Philips group; makes sure policy is realized and advises the Board of Management. The policy of the company is realized by the Corporate Departments, which consist from different departments, such as Finance, Information Technology, Human Resources Management, Legal Affairs and Communication and Public Relations.
So as we know such organization of the management of this company has made it the world’s biggest electronics company.