7 Types of

Organizational Chart
Structures
 Types of Organizational Structures:

• Organizational charts or org charts are the diagrams

that show the structures of employment of
organizations. These charts provide a clear and
straightforward declaration of the workflow in an
organization according to the positions and
functions of the employees and the links between
them
 Types of Organizational Structures:

Hierarchical Structure
• Hierarchical organizational structure is the most
preferred one among other models. It shows the
chain of command from the top to the bottom, in
which the top represents the member with the
supreme authority while the bottom represents the
low-level employees.
• In this type of structure, every employee has a
supervisor.
 Types of Organizational Structures:

Hierarchical Structure
Pros
• It shows who is authorized for particular decisions and tasks very
precisely.
• It shows the career path gradually going through the top, which
motivates the employees to climb the corporate ladder.
• Instructions go from top to bottom directly, provides a clear
communication.
Cons
• In such a structure, increased bureaucracy may slow the decision
making down.
• It can make the low-level employees feel less responsible for the
well being of the company since they all have supervisors above
them.
Types of Organizational Structures:

Hierarchical Structure
 Types of Organizational Structures:
Horizontal/ Flat Organizational Structure

• Horizontal or flat organizational structure is suitable for

organizations that have the least number of levels of
hierarchy. They usually have no middle management,
and the executives are directly in touch with the staff.

• It is mostly used by start-ups and small businesses and

probably cannot be used any more once the company
starts to grow.
 Types of Organizational Structures:
Horizontal/ Flat Organizational Structure
Pros
• Since the executives and employees are closer, the horizontal
structure provides a faster decision-making process and ensures the
engagement of every employee.
• Gives employees more responsibility.
Cons
• The employees will not have certain positions in which they could
specialize.
• Employees will not have specific supervisors to report to.
• It is hard for larger companies to adapt such a structure.
Types of Organizational Structures:
Horizontal/ Flat Organizational Structure
 Types of Organizational Structures:
Matrix Organizational Structure

• While matrix organizational charts show the hierarchy

between the positions, it also shows the cross-functional
temporary or permanent teams set up for different
projects managed by multiple supervisors.

• The team members end up having more than one

manager which forms multiple chains of command. This
situation is depicted by a grid or matrix-shaped structure.
 Types of Organizational Structures:
Matrix Organizational Structure
Pros
• Matrix structure allows the employees to be grouped according to
their specialties and to be picked up easily in accordance with the
requirements of the projects.
• As employees participate in different groups, they could have the
chance to improve their abilities in different areas of work.

Cons
• As some projects could be temporary, matrix charts need to be
updated constantly.
• Having more than one manager could cause confusion.
Types of Organizational Structures:
Matrix Organizational Structure
Types of Organizational Structures:
Matrix Organizational Structure
 Types of Organizational Structures:
Functional Organizational Structure

• Functional organizational structure resembles the

traditional hierarchical structure. However in a functional
structure, the organization is divided into smaller
departments that work for particular fields of operation.

• So each one of them has managers who are responsible

for reporting about their department to the executives
who are in a higher position.
 Types of Organizational Structures:
Functional Organizational Structure
Pros
• This kind of structure allows employee groups to put all their effort
into the area they work for and professionalize in that area.
• Employees have fixed responsibilities and tasks.

Cons
• It can cause a lack of communication between the departments.
• The self-centered mentality of a department may cause the failure of
the others.
• The bureaucratic structure may cause slow decision-making.
Types of Organizational Structures:
Functional Organizational Structure
Types of Organizational Structures:
Functional Organizational Structure
 Types of Organizational Structures:
Divisional Organizational Structure

• Divisional organizational structure is mostly used by

larger companies. In this structure, each organizational
function forms a division and they work autonomously
with their own resources.

• Divisions could be formed as market-based, product-

based, or geography-based according to the needs of
the company.
 Types of Organizational Structures:
Divisional Organizational Structure

Pros
• The autonomy of the divisions provides a more flexible
working area.
• Ensures less risk for the company in case of a failure of
one division.
Cons
• It can cause a communication gap within the company.
• It causes greater tax obligations since every division is
operated as a separate company.
Types of Organizational Structures:
Divisional Organizational Structure
Types of Organizational Structures:
Divisional Organizational Structure
 Types of Organizational Structures:
Team-Based Organizational Structure

• Team-based structure is a relatively new structure that

opposes the traditional hierarchical structure and it
slowly rises all around the world.

• In such a structure, employees come together and form

groups in order to fulfill their tasks that serve a common
goal.
 Types of Organizational Structures:
Team-Based Organizational Structure

Pros
• The elimination of some statuses assures faster processes of
problem-solving and decision making.
• Working in teams provides higher productivity and performance.

Cons
• Such a lateral structure does not let employees set a specific career
path going through the top which could be discouraging.
• The leadership must be very effective since there are fewer
managers.
Types of Organizational Structures:
Team-Based Organizational Structure
 Types of Organizational Structures:
Network-Based Organizational Structure

• Network-based organizational structure is a

contemporary way of configuration. It allows a central
organization to work with various types of external
organizations for its needs.

• The communication between the organizations relies on

mutual reliance and interest rather than hierarchy.
 Types of Organizational Structures:
Network-Based Organizational Structure

Pros
• This structure gives employees pretty much equal responsibility and
power which could embolden them.
• It also provides a flexible and independent working area.
Cons
• The complicated structure might cause confusion and errors.
• A higher number of supervisors.
• The network-based structure relies on digital communication which
can cause delays and problems.
Types of Organizational Structures:
Network-Based Organizational Structure
Types of Organizational Structures

source: https://www.someka.net/blog/types-of-
organizational-structures/
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