Top Three Popular Types of Organizational Structure
Whether an organization is large or small, they need a defined organizational structure to help or hinder its progress toward accomplishing these goals. Here are three main organizational structure types:
- Functional Organizational Structure
- Hierarchical Organizational Structure
- Matrix Organizational Structure
Three Most Commonly-used Organizational Structures Types
Following are detailed introduction for those three organizational structure types.
1. Functional Organizational Structure
Functional Organizational Structure, one of the most common types of organizational structures, groups individuals by specific functions performed. The advantage of this type of structure is that It works perfectly when small companies are heavily project focused.
2. Hierarchical Organizational Structure
Hierarchical Organizational Structure, is often used in larger companies that operate in a wide geographic area.
3. Matrix Organizational Structure
Matrix Organizational Structure is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally and vertically. It is often used when the firm has to be highly responsive to a rapidly changing external environment.