Structual control, all businesses have a structure to them, some can be very bureaucratic with lots of layers of management or they can be almost completely flat with few levels of management. How an organization sets up its internal structure has profound effects on how the business will develop long term.
The people who are doing the work are the moving force behind the Macintosh. My job is to create a space for them, to clear out the rest of the organization and keep it at bay.
Steve Jobs
http://www.brainyquote.com
Importance:
The importance of structural control cannot be understated. Many employees will respond to certain corporate structure better than others. Some like the well-defined hierarchy of a bureaucratic organization; while others enjoy working for an organization whose company is flat. There is no right way to set up an organization. It all depends on the need and what the company is working for.
Decentralized or Bureaucratic:
Goal of control approach
- Compliance or Commitment
Degree of formality
- Informal or Formal
Performance expectations
- Minimum or Reward
Organization design
- Flat or Tall
Reward system
- Group or Individual
Participation
- Extended or Limited
Links:
IRS definition of basic business types.
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Business-Structures
Entrepreneur Definitions
http://www.entrepreneur.com/article/75118