Types of Organizational Structures

Need to set up a structure for your organization, here is some information regarding different type of
organizational structures...
Every organization, to be effective, must have an organizational
structure. But what is an organizational structure? It is the form
of structure that determines the hierarchy and the reporting
structure in the organization. It is also called organizational
chart. There are different types of organization structures that
companies follow depending upon a variety of things it can be
based on geographical regions, products or hierarchy. To put it
simply an organizational structure is a plan that shows the
organization of wor! and the systematic arrangement of wor!.
Different Types of Organizational Structures
Traditional Structures
These are the structures that are based on functional division
and departments. These are the !ind of structures that follow
the organization"s rules and procedures to the T. they are
characterized by having precise authority lines for all levels in
the management. #arious types of structures under traditional structures are$
%ine &tructure ' This is the !ind of structure that has a very specific line of command. The approvals
and orders in this !ind of structure come from top to bottom in a line, hence the name line structure.
This !ind of structure is suitable for smaller organizations li!e small accounting firms and law offices.
This is the sort of structure that allows for easy decision'ma!ing and is also very informal in nature.
They have fewer departments, which ma!es the entire organization a very decentralized one.
%ine and &taff &tructure ' Though line structure is suitable for most organizations, especially small
ones, it is not effective for larger companies. This is where the line and staff organizational structure
comes into play. %ine and structure combines the line structure where information and approvals
come from top to bottom, with staff departments for support and specialization. %ine and staff
organizational structures are more centralized. (anagers of line and staff have authority over their
subordinates, but staff managers have no authority over line managers and their subordinates. The
decision'ma!ing process becomes slower in this type of organizational structure because of the layers
and guidelines that are typical to it. )lso, let"s not forget the formality involved.
*unctional &tructure ' This !ind of organizational structure classifies people according to the function
they perform in their professional life or according to the functions performed by them in the
organization. The organization chart for a functional organization consists of #ice +resident, &ales
department, ,ustomer &ervice -epartment, Engineering or production department, )ccounting
department and )dministrative department.
Divisional Structures
These are the !inds of structures that are based upon the different divisions in the organization. These
structures can be further divided into$
+roduct &tructure ' ) product structure is based on organizing employees and wor! on the basis of
the different types of products. If the company produces three different types of products, they will
have three different divisions for these products.
(ar!et &tructure ' (ar!et structure is used to group employees on the basis of specific mar!et the
company sells in. ) company could have . different mar!ets they use and according to this structure,
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each would be a separate division in the structure.
/eographic &tructure ' %arge organizations have offices at different place, for e0ample there could be
a north zone, south zone, west and east zone. The organizational structure would then follow a zonal
structure.
Matrix Structure
This is a structure which is a combination of function and product structures. This combines the best of both
worlds to ma!e an efficient organizational structure. This structure is the most comple0 organizational
structure.
Some Other Kinds of Organizational Structures
Bureaucratic Structure ' This !ind of structure can be seen in tall organizations where tas!s,
processes and procedures are all standardized and this type of structure is suitable for huge
enterprises that involve comple0 operations and re1uire smooth administration of the same.
Pre-Bureaucratic Structure ' This structural form is best e0emplified in flat organizations where
administration and control are centralized and there is very little, if any, standardization of tas!s.
Network Structure ' In this !ind of structure, the organization managers are re1uired to maintain and
coordinate business2professional relations with third parties such as clients, vendors and associates in
order to achieve a collective goal of profitability and growth. (ost of the time, these relations are
maintained and tas!s are coordinated via telecommunications and electronic media and, hence, this
type of structure is also !nown as #irtual &tructure.
Team Structure ' 3rganizations with team structures can have both vertical as well as horizontal
process flows. The most distinct feature of such an organizational structure is that different tas!s and
processes are allotted to specialized teams of personnel in such a way as a harmonious coordination
is struc! among the various tas!'teams.
It is important to find an organizational structure that wor!s best for the organization as the wrong set up
could hamper proper functioning in the organization.
By 4hushnuma Irani
%ast 5pdated$ 6726827966
)bout Buzzle : +rivacy +olicy
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