Three most commonly-used organizational structures types including functional, hierarchical and matrix organizational structure will be introduced in this article.
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.
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FAQs
There are virtually hundreds of ways companies can structure their business, but three of the most common types of organizational structures are functional, flat, matrix, and team – each of which has its own pros and cons.
What are the three 3 types of organization structure? ›
Types of Organizational Structure
- Functional Structure. Under this structure, employees are grouped into the same departments based on similarity in their skill sets, tasks, and accountabilities. ...
- Divisional Structure. ...
- Matrix Structure. ...
- Hybrid Structure.
There are three types of organizational structures in project management: functional, matrix, and projectized. Each project structure framework is determined by the authority, roles, and responsibilities of the team members within the existing organizational structure.
What are the 3 parts of an organizational system? ›
The three components of an organizational structure include delegation, job description, and departmentalization. Delegation is a component of an organizational structure used to give authority to a person to assist in managing a particular activity's performance.
What is the most common type of organizational structure quizlet? ›
Seven types of organizational structures are simple, functional, divisional, matrix, team-based, network and modular. Concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies.
What are the three 3 core functions of an organization? ›
The three basic functions of business organizations are operations, marketing, and finance.
What are the three 3 basic functions of an organization? ›
Every business is managed through three major functions: finance, marketing, and operations management.
What are the 3 types of business organization define? ›
There are three main types of business organizations: sole proprietorship, partnership and corporation.
What is the most common type of structure? ›
Hierarchical structure
It's the most common organizational structure type that follows a direct chain of command. A chain of command, in this case, goes from senior management to general employees through a range of executives on the departmental and team level.
What are the 4 main Organisational structures? ›
Types of organizational structures include functional, divisional, flatarchy, and matrix structures. Senior leaders should consider a variety of factors including the business's goals, industry, and culture before deciding which type of organization is best for their businesses.
A Simple Organisational Structure is a basic and flat managerial hierarchy where the top layer of management interacts directly with every employee, and there are few levels in between. The top manager or owner takes all major decisions.
What are the 3 basics of the organizational structure? ›
3 Basic Types of Organizational Structure
- Functional. A functional structure is simply one that divides a company by specialty. ...
- Divisional. A divisional structure can divide a company into different products or services of that company. ...
- Matrix. Matrix structures can be more complex.
There are three main types of organizational structure: functional, divisional and matrix structure.
What are the three types of company organizational structure? ›
There are three main types of organizational structure: functional structure, divisional structure and a blend of the two, called matrix structure.
What are the three typical company structures? ›
Hierarchical, team-based, and bureaucratic structures are the three most common types of organizational structures found in most corporations.
What are the three main functions in most organizations? ›
Every business is managed through three major functions: finance, marketing, and operations management.
Which of the following is the most common type of organization structure? ›
Hierarchical structure
It is the most common type of organizational structure. Employees may be grouped by their role or function, geography or type of products or services they provide.
