What are the 7 types of organizational structure?
Organizational structure is the way a business or other entity divides its functions into departments and subdepartments, and then groups those departments into teams and units.
Organizational structure helps organizations achieve their goals by making it possible for them to focus on different areas of business at the same time. It also helps them determine how much effort and time they're willing to spend on each area.
Organizational structure refers to the way in which a company is structured. It can be hierarchical, functional, or matrix-based. It can also be flat, which means there is no hierarchy and everyone has equal say.
There are many different types of organizational structures. A functional structure is one in which employees are grouped based on their function within the organization. For example, if you were working at a hospital you would be assigned to a specific department (such as radiology) and that would be your primary responsibility throughout your entire employment at the hospital. You wouldn't have any other functions or responsibilities outside of radiology—you would just work in radiology all day long.
The 7 key types of organizational structure are:
Functional organizational structure is a way of organizing a company where the employees are grouped by their job functions. This means that if you work in a business that uses the functional organizational structure, you may be part of several different departments, and each department has its own set of goals.
This type of organizational structure is also called "horizontal" or "layer" organization because it divides employees into divisions based on their position within the company rather than by their level of authority within it. For example, an employee who works in accounting would be part of the accounting department, but they would also be part of other departments like marketing or engineering depending on what projects they are currently working on.
Functional organizational structures are used by companies that want to make sure there is clear accountability for each task completed by each employee. By organizing employees into departments based on what tasks they do rather than who they report to (as with a traditional top-down hierarchy), managers can more easily monitor who's doing what and make sure that no one person takes too much responsibility for any given project without help from others nearby who can lend assistance when needed.
Hierarchical organizational structure is a type of management that uses a pyramid-shaped structure. At the top of the pyramid is the CEO or owner, who makes all major decisions. Each level in the hierarchy below the CEO has employees reporting to them and making their own decisions on a smaller scale. Hierarchical organizational structures are generally used when there's one person at the top who needs to make all major decisions, but there's still some need for lower-level managers to make their own decisions about how to accomplish goals.
A hierarchical organizational structure is also known as an "I" organization structure because it looks like an upside down "I" from above.
A horizontal organizational structure is one in which the team members are organized according to their skill sets rather than their position within the company. This means that the people on the team have more of a collaborative approach to the work they do, rather than being independent and focused on a single task.
In a horizontal organizational structure, teams are often organized by function or skill set rather than by department or position. For example, instead of having salespeople in one department and marketing professionals in another, this type of organization would put all salespeople together and all marketing professionals together—regardless of whether they are part of different departments or not.
Divisional organizational structure is a way of organizing a business that is based on the functions that each part of the company performs.
Each division is responsible for a particular set of tasks, and there are no barriers between them. The idea behind this model is that it allows for greater efficiency because each group can focus on what they do best.
The downside of this model is that it doesn't allow for communication across divisions, which can make it difficult to transfer information from one group to another.
A team-based organizational structure is a form of organization in which teams are formed to work on specific tasks or projects. The teams may be permanent or temporary, depending on the nature of the project. Each team is usually composed of members from different departments, who work together to achieve a common goal.
Teams are effective because they allow for more diverse perspectives and ideas to be brought to bear on a problem. They also make it possible for managers to delegate responsibility and provide support for employees who are working on complex tasks.
Matrix-based organizational structure is a type of organizational structure that uses a combination of functional and product-based departments. In this type of structure, there are two main divisions: functional (departments such as marketing and sales) and product-based (departments such as accounting, human resources). Each department will have its own leader, who reports to both the functional manager and the product manager. This means that each leader will have two bosses—one in the department who they report to directly, and one who manages all of the departments in the matrix.
The advantage of matrix-based organizational structure is that it allows a company to be more flexible when it comes to meeting the needs of customers. For example, if a certain department needs more resources than another department because it's currently working on a big project, then the company can allocate more resources to that department without having to change its entire structure or disrupt other parts of its organization.
A network organizational structure is a type of organizational structure that emphasizes the importance of social interactions and information sharing. This kind of structure is often used in large organizations where many people need to work together on projects.
In a network organizational structure, managers do not hold direct authority over employees but instead serve as liaisons between employees and the rest of the organization. Managers are responsible for providing support and guidance to their teams, but they do not have any authority over them. The main purpose of a network organizational structure is to encourage collaboration among employees so that they can work together more effectively on projects.