Type of Organization Structure

type of organization structure

The type of organization structure shows your organization’s flow of information and leadership process. So, to delegate tasks and duties among the employee’s it should have a successful business running process. An organizational structure connects all groups of rules, relationships, and responsibilities. So, we can see eight types of organizational structure. Each structure has centralized and decentralized terms. And also, each organizational structure includes advantages and disadvantages. Therefore, you have to consider what structure you choose.

What Is An Organizational Structure

This means a company’s set of rules, roles, relationships, and responsibilities how to divides among the employees. So, it determines how an organization achieves its goals and objectives. The organization has a management to control all of those things. Therefore, It contains the below parties.

  • Mid-level staff
  • Senior management
  • Executive management
  • Owners

So, the above parties govern the company and it is an effectively hierarchy.

How Many Types

First, you should know there are how many types of organizational structures. Mainly, there are two types of structures such as centralized and decentralized. Therefore using these two types, high-level management control the organization. So, we can identify eight types of structures according to either centralized or decentralized.

  • Hierarchical structure
  • Functional structure
  • Divisional structure
  • Flatarchy structure
  • Matrix structure
  • Team structure
  • Network structure
  • Projectized structure

In an organization, we can see above all structures. Let’s talk about the eight types of structures.

Hierarchical Type Of Organization Structure

This is the most common type. This type of organization structure is a line organization. The hierarchical structure is a chain of command when from the top to the bottom. For example, power divides from the board of directors to the CEO. When hierarchical structure, all departments, and staff directors should report to the CEO.

Advantages Of Hierarchical Structure

  • This structure clearly defines the connection and division of authority.
  • Each employee can specialize in their work.
  • Build a strong relationship among the employees.

Functional Type Of Organization Structure

In this platform, each department has each head and he or she should report to the CEO. However, the functional head should appear the main role of the structure. Thus, employee specialization development, interrelation with individual departments and employees are the advantages of the functional structure.

Divisional Type Of Organization Structure

When we come to a divisional structure, it contains many large departments. They are common in enterprise companies. Here, each line or product has its own chief. Which is, we suppose that a shoe factory may operate on a divisional structure. So, each line has each executive to command it. There are some advantages. They are, the different department has different flexibility ways to operate, can adapt to the customer needs and create innovation.

Flat Structure Type Of Organization

In the flat type of organization structure, all employees should have equal authority. But, high-level managers may have just little bit power more than employees. And also,this structure commonly has been using in don’t have enough employees to divide into departments. So, as advantages, we can mention more responsibility, increase communication and new faster practice of employees.

Matrix structure

This comes from the classic hierarchical structure. Matrix structure lets the employees move from one department to another. This organization template indicates the horizontal lines of the matrix structure.


  • Supervisors can choose the best worker.
  • Opportunities to learn and develop the skills

Team Structure

This is decentralized. However, team structure allows heads of departments to collaborate with the employees. It is like a matrix structure. Enhance and growth productivity prioritizes the experiences and declines management tasks and duties are advantages of the team structure.

Network structure

This type of organization structure most suited for large and international companies. Therefore, Its scope expands to a large area. It is not just a connection between departments and office locations. The network structure is the decentralized structure.

Projectized Structure

This type of structure focus on one project at a time. So, here project managers indicate the role of supervisor and this includes in centralized structure. Efficient decision-making, enhance labor cooperation and increase flexibility are the benefits of projectized structure.

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