(Entrepreneur) — There are two basic management formats. One is the pyramid organization, where the head of the company, typically the owner, makes all the decisions and managers simply implement the company’s mandates. Alternatively, there is the flat organization, where managers make operational decisions, with the management team and owner only reviewing results or discussing issues and problems. Managers resolve daily operation issues, while reporting on a regular timely basis such as in a weekly managers’ meeting. Of course, the owner can always review critical issues as required, but the company is run by the managers in this flat format. There is a huge difference in these styles. The pyramid organization concentrates all power and decision-making typically in the owner’s hands. The owner micromanages every aspect of the business with a constant flow of managers asking him or her for immediate short-term consideration and response to whatever is happening at the moment.
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