Types of Organization Structure
Types of Organization Structure
Types of Organization Structures
1. Traditional Ones 2. More Contemporary Ones
1. Traditional Organizational Design
i. Simple Structure
An organizational design with low departmentalization, wide span
of control, centralized authority and little formalization.
However most companies don’t remain simple structure, tend to
become more specialized and formalized.
Organization Structure and Design
Types of Organization Structures
1. Traditional Organizational Design
ii. Functional Structure
An organizational design that group similar or related occupational
specialties. You can say this structure is functional
departmentalization.
Organization is divided into smaller groups based on
specialized functional areas, such as IT, finance, or marketing.
Organization Structure and Design
Types of Organization Structures
1. Traditional Organizational Design
iii. Division Structure
An organizational structure made up of separate business units or
division.
Division manager has authority over his/her unit and responsible for
performance.
Each division contains all the necessary resources and functions
within it to support that product line
Organization Structure and Design
Types of Organization Structures
1. Traditional Organizational Design
iii. Division Structure
Organization Structure and Design
Types of Organization Structures
2. Contemporary Organizational Design
i. Team Structure
An organizational structure in which entire organization is made up
of team or work group. Employee are more involved and
empowered, Reduce barriers among functional areas.
They are less hierarchical and they have flexible structures that
reinforce problem-solving, decision-making and teamwork.
No clear chain of command. Pressure on team to perform.
Organization Structure and Design
Types of Organization Structures
2. Contemporary Organizational Design
ii. Matrix Structure
An organizational structure that assign specialist from different
department or functional area to work on project but return back to their
area when project is completed.
For example, a project or task team established to develop a new product
might include engineers and design specialists as well as those with
marketing, financial, personnel and production skills.
Flexible design, fast decision making but conflict exit among individuals.
Organization Structure and Design
Types of Organization Structures
2. Contemporary Organizational Design
iii. Project Structure
A structure that assign specialists from different functional area and they
continue working together on various project. Such organization work on
projects.
iv. Boundary less Structure
Boundary less organizations are defined specifically by a lack of structures,
includes virtual and network types organization ( organization consists of
temporary hired people). Utilize talent wherever its found. Lack of control.
The End
