Types of organizational structure
1. Functional Structure: This type of structure groups employees based on their job functions or areas of expertise, such as finance, marketing, and human resources. Each department is managed by a functional manager, and decision-making authority flows vertically through the hierarchy.
2. Divisional Structure: In a divisional structure, the organization is divided into separate divisions or business units based on products, geographic regions, or customers. Each division operates as its own mini-organization with its own functional departments, such as marketing and finance. The divisional structure allows for more flexibility and autonomy within each division.
3. Matrix Structure: A matrix structure combines elements of both functional and divisional structures. It creates dual reporting relationships, where employees report to both a functional manager and a project or product manager. This structure promotes cross-functional collaboration and allows for optimization of resources.
4. Team-based Structure: In a team-based structure, the organization is organized into self-directed teams or workgroups that have the authority and responsibility for decision-making. These teams are typically formed based on specific projects, and they are responsible for all aspects of completing the project.
5. Flat Structure: A flat organizational structure has fewer hierarchical levels and a wide span of control. It promotes open communication, decision-making at all levels, and a more flexible and agile organization.
6. Network Structure: In a network structure, the organization outsources or partners with other organizations to perform specific functions or tasks. The organization acts as a hub, coordinating and overseeing the activities of various external partners.
7. Virtual Structure: A virtual organizational structure relies heavily on technology to connect geographically dispersed employees or teams. It allows for remote work and collaboration, reducing the need for physical office spaces.
These are some of the commonly used organizational structures, and organizations may adopt a combination or customize them to suit their specific needs and goals.
There are several types of organizational structures commonly used by businesses. Here are five main types:
1. Functional Organizational Structure:
- In this structure, employees are grouped by their functions or specialties, such as marketing, finance, human resources, and operations.
- Each department is self-contained and focuses on its specific tasks.
- This structure allows for expertise and efficiency within each functional area.
2. Divisional Organizational Structure:
- In this structure, the organization is divided into semi-autonomous divisions based on product lines, geographical regions, or customer segments.
- Each division operates as a separate entity with its own resources and functions, allowing for more flexibility and quicker response to market changes.
3. Matrix Organizational Structure:
- This structure blends functional and divisional structures by combining employees from different functional areas into cross-functional teams.
- Employees report to both a functional manager and a project or team manager, creating dual lines of authority.
- Matrix structure promotes collaboration and specialization.
4. Flat Organizational Structure:
- In a flat structure, there are fewer levels of management and a wider span of control.
- Employees have more autonomy and decision-making authority.
- Communication flows directly between employees and top-level management, fostering a flexible and agile working environment.
5. Hierarchical Organizational Structure:
- This traditional structure follows a pyramid-shaped hierarchy with clearly defined levels of management and authority.
- Decision-making flows from top to bottom, with higher-level managers having more control and authority.
- Information and communication usually follow formal channels within the hierarchy.
It's important to note that organizations can also have variations or hybrids of these structures, as they may adapt to their specific needs, industry, and size.