What Are The Types Of Organizational Structure?

What Are The Types Of Organizational Structure?

1 Answer

  1. Organizational structure is a visual depiction of a firm which shows the flow of command and decision making within the organization.
    There are 9 main types of organizational structure as follows:
    1. Functional Organizational Structure: Here the departments or created on the basis of common functions like finance will be one department, HR another, etc. It is the most common form of organizational structure.
    2. Product-Based Divisional Structure: Each division here comprises of smaller functional structure. For example every division may have a small marketing associated to them within the division. Each division here is made of a product line.
    3. Market-Based Divisional Structure: It is form of divisional structure where divisions are made on the basis of markets, industries, customer segments, etc. Such can be structure followed in an organization where different products cater to different market segments .
    4. Geographical Divisional Structure: Here divisions are made on the basis of Geography that your business caters to. Each geographical division may have sub divisions as functional teams.
    5. Process-Based Structure: It is designed around end to end flow of different processes. Here we consider the activities that employees perform and also the interaction between these activities. Examples of division could be R&D, Order Fulfillments, etc.
    6. Matrix Structure: In this structure employees have dual reporting. Here employees report to a primary person and also a secondary person. For example employee may work in marketing department but also reports to Sales manager.
    7. Circular Structure: In circular structure higher level employees are part of the inner most circle and other departments and employees revolve around it in the outer circles. The higher level employees are in center to guide the lower level employees with their vision and not command the employees.
    8. Flat Structure: Here the management level is lowered. There is less hierarchy and lower level employees can reach management level faster.
    9. Network Structure: Such a structure is formed when two companies work in collaboration with each other by sharing resources.

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