Organizational
Structure
Organizational
Structure
This refers to how an
organization is
designed, organized
and managed.
7 Types of
Organizational
Structure
7 Types of Organizational
Structure
1. FUNCTIONAL
- This structure groups employees based
on their specialized functions or skills such as
marketing, finance and operations, etc.
7 Types of Organizational
Structure
2. DIVISIONAL STRUCTURE
- This structure divides an organization into selfcontained divisions based on products, services, customers,
and geographic locations. Each division operates as its own
entity, with its own resources, functions, and goals.
7 Types of Organizational
Structure
3. MATRIX STRUCTURE
- This structure combines functional and
divisional structures. Hence, creating a dual
reporting system. It allows employees to report to
multiple managers, enabling them to collaborate
and work on various projects simultaneously.
7 Types of Organizational
Structure
4. NETWORK STRUCTURE
- In a network structure, an organization collaborates
with external partners, suppliers, and contractors to
accomplish its goals. It is characterized by a flexible and
decentralized approach, relying on external relationships
and outsourcing to achieve efficiency and innovation.
7 Types of Organizational
Structure
5. TEAM-BASED STRUCTURE
- Employees are organized into selfmanaged teams that are responsible for
completing specific or projects. Decisionmaking is decentralized to achieve their
objectives.
7 Types of Organizational
Structure
6. FLAT STRUCTURE
- A flat structure has a minimal number of
layers or levels of management It aims to eliminate
unnecessary hierarchies and bureaucracy. Promoting
open communication, employee empowerment and
faster decision-making.
7 Types of Organizational
Structure
7. HIRARCHICAL STRUCTURE
- Is a structure that is characterized by multiple levels
of management, where each level has its own set of
responsibilities and authority. Decision-making typically
flows from the top-down, with clear lines of command and
control.
Organizational
Structure
It’s
important to note that
organizations may adopt a combination of
these structures or modify them to fit their
specific needs and goals. The choice of
organizational structure depends on factors
such as the organizational size, industry,
goals, and external environment.
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Organizational Structure
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