business management models

3 popular business management models today

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All businesses, regardless of industry, must have specific organizational and management characteristics. It is possible that each business will have the same or different form of management, but what they all have in common is that they must be set out clearly. The following post by Johnson's Blog will share with you the business management models are in common use today.

Paradigm Enterprise management using online structure.

Form online management structure is a fairly popular business management model this year. Here managers will make decisions and perform direct supervision with subordinates. For this model, the subordinates will only receive orders and be supervised by the superiors who perform direct leadership.

The online business management model will have the following outstanding features:

  • The relationships of all members in this organization will be linked in an online form. The execution unit will only receive orders and work from a direct supervisor.
  • The online model is also applied to departments that have the same direct relationship to the organization's goals as the manufacturing and distribution departments that work with the product design department.


  • Help simplify management and provide centralized management modes, unifying the goals of the business. This form of management creates a unified, more flexible organizational structure with the current complex changing business environment.
  • Improve the ability to execute orders because there is unity in the goal by the order issued from the top management. This helps all members of the organization to follow a common goal. 


  • Limiting the ability of experts to contribute professional qualifications in management aspects. In addition, this model also requires leaders to have overall knowledge as well as the ability to make accurate judgments to be able to direct the departments in charge of professional management.

Because of the above characteristics, the online-structured business management model will often be used for units with small scale, few departments and the management is usually not too difficult.

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Business management model using functional structure

The business management model is based on a functional structure, in which each department with a management function will be separated to undertake work. The highlight of this management model is that the personnel with management functions will have to have professional knowledge and be able to meet their professional skills within the scope of management.


  • Reducing the pressure load of the head office, making it easier to perform management functions. This will create a premise to attract as well as develop management experts with in-depth professional knowledge.
  • With this type of organizational structure, it will help businesses reduce functional overlap, and tasks will be clearly divided in each department. Create a high degree of specialization for each career skill.


  • It will be difficult for the leader to manage the entire organization, the goals of each department will not be the same.
  • The departments will not have cohesion, it will be difficult to work together, sometimes it will cause disagreements within the enterprise.

Form management according to the functional structure model will often be used for large enterprises with many departments, because they will help reduce pressure on leaders as well as exploit the ability of individual managers. 

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Enterprise management model according to the online-functional combination structure

This is a combination management of the two forms above, where the relationship between superiors and subordinates will be like a straight line. The separate management units will only be responsible for preparing the instructions and conducting the monitoring of the online department's operational progress.

Biggest advantage online management method – function is: Helping to attract experts in solving professional problems so that they can reduce the burden at the leadership levels while still ensuring the right goals.

However, this structure still has the disadvantage that it increases the number of functional agencies in the enterprise, thereby causing cumbersome for the management apparatus of the enterprise. Requires leaders to be able to coordinate activities with departments to avoid the phenomenon of mismatched coordination between functional agencies.

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Above is just 3 business management models Currently, in fact, there are still other management models. The choice of model will depend on the specific characteristics of each organization. If you are looking for the right management method for your business, contact Johnson's Blog to get the most suitable solution.


Johnson Vu – Deputy General Director of Viindoo Technology Joint Stock Company

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