The four types of organizational structures are functional, multidivisional, flat and matrix structures. A functional structure is the most traditional approach. It requires grouping people who perform similar tasks based on their area of expertise. In other words, you'll find all finance accountants and marketing salespeople.
Managers led each area and report to a director or executive who can oversee multiple departments. In a divisional structure, people are grouped based on the product or service they provide, not the work they do. For example, a large corporation like General Electric has electronics, transportation, and aviation divisions, each with its own team of accountants, vendors, and so on. Global corporations can have divisions based on different geographical areas.
On a smaller scale, a restaurant that also offers catering services may have separate divisions to supervise weddings, corporate events, and businesses within the main restaurant. A matrix structure is a hybrid of functional and divisional structures. It may involve employees reporting to different managers, depending on their current assignment. For example, a software design specialist can brief their IT boss, but they have also joined specific projects because of their experience.
When that happens, she will report to a different boss, as long as that project continues. The downside is that it can be confusing for employees to report to multiple bosses. However, clear communication on priorities at all levels can eliminate these problems. The matrix structure requires a great deal of planning, but it can allow the creation of the best possible teams to address the biggest challenges.
The flat structure dispenses with the usual hierarchy of a functional structure, decentralizing management and eliminating the need for mid-level managers. Employees essentially act as their own boss, giving them the ability to communicate directly with their colleagues on ideas and projects. The advantage is much more freedom for employees, which requires a group of entrepreneurs who don't need managers to review their work on a daily basis. A flat structure is common in incubators and startups, where the focus is on product and service design, not production or top-down management structures.
The four types of organizational structures in companies can work well in the right situations. While most companies will choose between functional or divisional approaches, a flat approach is becoming increasingly popular with modern companies. In a functional structure, organizations are divided into specialized groups with specific functions and duties. A functional structure is also known as a bureaucratic organizational structure and is commonly found in small and medium-sized enterprises.
Most people in the workforce have experience working in this type of organizational structure. For example, many companies divide their organization into several departments, such as finance, marketing, and human resources. Each of these departments has a manager who oversees it. This manager is then supervised by an administrator or executive who oversees several departments.
In a divisional structure, several teams work together to achieve a single and common goal. Each of these divisions has an executive who manages the operation of that branch, controls its budgets and allocates its resources. Large companies employ this type of organizational structure. An example of the divisional structure is an automotive company that divides its company into branches of SUV, electric or sedan vehicles.
While each branch has its own function, they all work towards the same goal of making a sale. This is also known as a multidivisional structure. In a flatarchy, there are few or no levels of management. A company using this structure could only have one manager between its executive and all other employees.
It's called flatarchy because it's a hybrid of a hierarchy and a flat organization. This type of organizational structure is most used by smaller companies, since they have fewer employees, although it can be used in companies of all sizes. While some companies grow from this organizational structure, others continue to use it. In the matrix style of organizational structure, employees are divided into teams that report to two managers, a project or product manager, along with a functional manager.
In essence, a matrix structure is a combination of several organizational structures. Because these teams have two managers, a matrix structure promotes duality and resource sharing. Employees working for companies that use the matrix structure have the potential to expand their skill set, as they can be assigned to several projects that require different levels of experience or skills. Different types of structures such as concrete, frame, shell, membrane, truss, cables and arches, surface structure, etc.
You can understand the various types of building structures available and can determine which one you want to employ for your home, business, or other structure in the future. The types of organizational structures in businesses are as important as their products, marketing plan, and long-term strategy. Unfortunately, they are very expensive than other types of buildings and their design must be square or rectangular. .