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A company's organizational structure is an outline of it's framework and guidelines for managing business operations. There are two types of organizational structure found in the business environment, centralized and decentralized, both with advantages and disadvantages. In centralized organizational structures, one individual makes decisions and provides direction. Small businesses often use this structure. Centralized organizations are efficient business decision makers. Owners set objectives for the company to follow when achieving mission and vision goals. Centralized organizations can suffer the negative effects of every decision in the company being the responsibility of owners due to more time required to accomplish tasks resulting in sluggish operations(Centralized Vs. Decentralized Organizational Structure). Decentralized organizational structure