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The most common type of organisation for a start-up in the initial years is: Functional organisation Product organisation SBU organisation Matrix organisation

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Solution

The most common type of organization for a start-up in the initial years is a Functional organization.

Here's why:

  1. Simplicity: In the early stages, startups usually have a simple organizational structure to accommodate the small number of employees. A functional organization is the simplest and most common type of organizational structure, where staff is grouped by specialty, such as engineering, marketing, sales, and customer service.

  2. Focus on Core Functions: Startups need to focus on their core functions to grow. A functional organization allows for this focus, as each department is dedicated to performing its specific function.

  3. Efficiency: Functional organizations can lead to increased efficiencies as similar skill sets and work outputs are grouped together. This allows for faster decision-making and problem-solving.

  4. Cost-Effective: For startups that are often operating on limited budgets, a functional organization can be more cost-effective. This is because it requires fewer managers as employees report to functional managers, not to project managers.

  5. Easier Management: In a functional organization, management can easily control and coordinate the functions of various departments and employees.

However, as the startup grows, it might need to consider other types of organizational structures like Product organization, SBU organization, or Matrix organization to better manage its expanding operations and workforce.

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