College of Accountancy and Finance

Polytechnic University of the Philippines

Sta. Mesa, Manila

Introduction to Organizations and Management:

A Written Report on Organizational Types

(Organizational Structures and Forms)

Inocencio, Angelica Lee S.

BSMA 1-11

March 20, 2020

 TABLE OF CONTENTS

Title Page i

Table of Contents ii

Generic Structural Forms 1

1. Simple Structure 1

2. U-Form 2

3. M-Form 2

4. H-Form 3

Hybrid Structural Form 4

1. Matrix Structure 4

2. Team-Based Structure 5

References 7

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 Organizational types provide guidance by laying out the official relationships from

bottom to top to effectively convey information and instructions to everyone in the company.

According to Tony Greener’s book (2010), there are six (6) major organizational types:

Unitary, Centralised, Decentralised, Divisionalised, Matrix and Process Structure. On the

other hand, Nishadha (2019) discussed in a blog seven (7) organizational structures are used

in different scenarios: Hierarchical, Matrix, Horizontal/Flat, Network, Divisional, Line and

Team-based Structures. Other authors have their own set of organizational structures too.

Although the name of the structure explains itself, these are still different variations that exist

under these given structures. Further research unveiled different types as with different names

but similar descriptions and illustrations.

Putting everything together, a set of organizational structures are compiled to cover

these different types with consideration to the illustration and definition of each type. Now,

there are three (4) generic organizational structural forms and two (2) hybrid organizational

structures. Generic Organizational Structural Forms are Simple Form, U-Forms, M-Forms

and H-Forms while Hybrid Organizational Structural Forms are Matrix and Team-based

Structures.

Generic Organizational Structure

1. Simple Structure

The first Generic Organizational Structure is the Simple Structure. The simplest type of

hierarchy is found in small companies where the owner participates in the work. Employees

and the owner work simultaneously without any levels. A perfect structural form for small

businesses that cannot afford many additional personal like a small grocery store that has a

hands-on owner who participates actively in the business. Even if one personnel are not

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present, the owner can take up the work left by the said personnel to maintain the flow of the

business. No levels are present because everyone, even the owner, is also doing what the

employees do, too.

1. U-Form Structure

U-Forms or Functional Structures are simple and is often referred to as a Flat Form or

Unitary Form. The reason behind the name “Functional” is its simple illustration wherein all

information comes from the head and is relayed directly to the function heads (Greener

2010). As shown in the figure below, this functional structure involves functional groups,

groups with members with the same background, same technical models for the same goal,

led by a functional manager. An article made by David Anderson (2019) discussed Netflix

used a U-Form Structural Form wherein there are six (6) functional groups that are under the

CEO which are the Legal, Talent, Finance, Product, Content ang Communications.

Photo retrieved from https://bookboon.com/reader/data/71d6ee13-0f5e-e011-bd88-22a08ed629e5_10/OEBPS/image/4126.jpg

2. M-Form Structure

M-Forms or Multi-divisional Form Structures are mostly utilized by a large

organizational framework that has multiple businesses in related areas called divisions. These

divisions are working towards a goal for the good of the company but is focused in

maintaining its own pace rather than keeping up with the whole company. An example of this

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structure is The Walt Disney Company wherein, according to Jack Gerard (2019), “uses a

variant of the multidivisional organizational structure to keep its massive entertainment

empire functioning smoothly. While its film, television, theme park and other divisions all

work toward the goal of enriching the company and even cooperate with each other to cross-

reference content, each division is still only responsible for its own operation”. Although the

divisions have their own goal to be done in their own conditions, it is still related and

connected to the other divisions.

Photo retrieved from https://i.pinimg.com/originals/fc/2e/32/fc2e32ec9b7a8e8e8974785301026831.jpg

3. H-Form Structure

H-Form or Holding/Conglomerate Structural Form is usually used by an organization

composed by a set of unrelated businesses. This structural form relies on the

departmentalization of various products that constitute different businesses. Unlike the M-

Form structures, the products or departments under a H-Form are unrelated to each other.

As mentioned by Warren Cassel Jr. (2019), Amazon is quite popular in the online

retailing industry since it is a diversified conglomerate with holding operating in several

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sectors. It’s products and services include Audible, CreateSpace, Goodreads, IMDb, etc.

These services are all under, and if not, a subsidiary of Amazon.com Inc. where each offer

services that are not related to each other. An article written by an anonymous author also

indicated that H-Form organizations usually exploit resources to further maximize the profit.

The figure below also shows that there are different heads for different sectors. These

differentiated sectors consist of directors that is not related to the other sectors (e.g. clinical

sector to the financial sector).

Photo retrieved from https://gm600asmumn.files.wordpress.com/2013/03/u-form-org-chart.png

Hybrid Structural Form

Generic Structural Forms are called that way since these are the simplest and most

used by organizations existing as of today. Hybrid Structures are more complicated when it

comes to the structure itself since one department can be under another department and a

someone can be a superior of one or two departments.

1. Matrix Form

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 The first Hybrid Structural Form is the Matrix Form. Organizations utilizing this

structural form diverts from the traditional hierarchy. It is set up as a grid, or matrix wherein

people with the similar skills are grouped for work assignments that leads to reporting to

more than one manager. For example, in an engineering department, engineers are opted to

report to the head engineer or the engineering manager. The same engineers may also be

assigned to different projects then, they are also obliged to report to the project managers.

Photo retrieved from https://image.slidesharecdn.com/chap3organizationstructure-090730002521-phpapp01/95/chap-3-organization-

structure-12-728.jpg?cb=1248913556

2. Team-Based Structure

Team-Based Structure, being the last Organizational Structure, is the newest among

the given structures. “McChrystal did not change the formal structure of the military. Rather,

he created a new structure that allowed for dynamism and flexibility within the overall

organizational structure. This new structure enabled officers to quickly move from their

administrative positions to mission-oriented projects for a set purpose, knowing that they

would once again have a home to return to within the larger organizational structure after the

mission was completed” (CCC). This structure is also described as an instrument to develop a

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“network of teams” with high degree of empowerment, strong communication and precise

conveyance of information. A great example for Team-Based organizations is the BPO

industry. Even the study conducted by Volini, et al. (2019) shows that most of the workload

in this industry is done in teams and a significant improvement in performance was observed.

Since work processes are handle by groups assigned with specific timelines, employees have

more autonomy and authority to make decisions without managerial approval. Members of

the team work together and establish trust to manage each task responsibly while the

managers establish the goals and milestones.

Photo retrieved from https://highperforming.weebly.com/uploads/3/0/4/9/30499774/1403664248.jpg

All in all, there are six (6) Structural Forms discussed but there are still variations to

every one of them. Organizations adapt the structural form that is best for it to maximize

resources and achieve standards and goals that were set. Studies also stated that there is no

perfect structure for any organization but there are ones that is helpful. It can make real

changes that will make workload, conveyance of information and communication to be

efficiently and effectively practiced and observed.

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 REFERENCES

 Anderson, David (November 10, 2019). Netflix’s Inc. Organizational Structure & Its

Strategic Implications. Retrieved from https://www.rancord.org/netflix-

organizational-structure-design-organizational-chart-characteristics

 Bindslev M. & Lӕgaard J. (2006). Organizational Theory {PDF File}. Retrieved

from https://bookboon.com/premium/reader/organizational-theory

 Cassell, Warren Jr. (November 1, 2019). An Overview of Businesses Owned by

Amazon. Retrieved from

https://www.investopedia.com/articles/investing/091015/overview-businesses-owned-

amazon.asp

 Gerard, Jack (July 12, 2019). Multidivisional Organizational Structure. Retrieved

from https://bizfluent.com/about-6707542-multidivisional-organizational-

structure.html

 Greener, Tony (2010). Understanding Organisations: Part 1 [PDF File]. Retrieved

from http://thuvienso.bvu.edu.vn/bitstream/TVDHBRVT/15847/1/Understanding-

Organisations-Part-I.pdf

 McDowell, et al. (March 1, 2016). Organizational Design [PDF File]. Retrieved from

https://www2.deloitte.com/us/en/insights/focus/human-capital-

trends/2016/organizational-models-network-of-teams.html#endnote-9

 Nishadha (June 12, 2019). Types of Organizational Charts (Organizational Structure

Types) for Different Scenarios. Retrieved from

https://creately.com/blog/diagrams/types-of-organizational-charts/

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 Volini, et al. (April 11, 2019). Organizational Performance: It’s A Team Sport [PDF

File]. Retrieved from https://www2.deloitte.com/us/en/insights/focus/human-capital-

trends/2019/team-based-organization.html