Types Of Business

Organization
 Mechanistic / Classical Organization

Pyramid Shape
Centralization of authority at
top Centralization at top

Departmentalization of jobs
Hierarchy of command
Org levels
Narrow span of control
Intense division of labour
Also termed as “Tall
organization”
 Organic / Behavioral Structure

Wider span of control

Moe general supervision
More decentralization
Less specialization & hierarchy of command
People are grouped according to their social needs
Also termed as “Flat Organization”
 Collateral Organization

A kind of organization required to deal with routine and non

routine problems
Routine problems - mechanistic
Non routine problems – organic
A collateral organization performs is designed to deal with both the
kind of problems
The team is also skilled to perform in the above manner
 Virtual Organizations

People are connected virtually either through computers, mobile

phones, wireless networks
 Boundaryless Organization

No fixed hierarchy
Informal organizations where creativity , innovation ,new ideas are
always welcomed
No fixed rules and regulations
 Functional Organization

President

VP VP VP VP
Marketing HR Finance Production
 Product Organization

President

VP VP VP VP
Marketing HR Finance Production

GM GM GM
Pharma Products Cosmetics Personal Care
 Market Organization

President

VP VP VP VP
Marketing HR Finance Production

VP VP VP
America Europe Africa
 Matrix Organization

An organization structure in which each employee reports to both a

functional or divisional manager and to a project or group manager
Thank You