An organizational structure is a structure which is adopted by an organization for smooth management and flow of information. An organization consists of different levels thus there needs to be a proper manner or a channel which should be followed by every individual working in the organization for the flow of information and order.
There are different types of organizational structure and the organization or the company can choose the one which will result in its better management and future growth. Below is the list of all the organizational structures. To know more, keep reading!
Functional structure
In any organization or company, there are different departments and each department is having their own function. In a functional organizational structure, the divisions are made on functional bases such as IT, marketing and finance. This is one of the most common organizational structure which is adopted by many companies and people working in each department are specialized in their area. Though this structure is widely adopted, it is also having a disadvantage. Proper communication may not be possible between departments which lead to lack of innovation and may even lead to delay in operation.
Divisional structure
This organizational structure, departments are divided based on the division of geographical region or product. Every division consists of their own necessary functions and resources which they need for their operation such as IT, human resource or finance. This structure is very common and effective as any failure in one division does not affect the other division. When the multi divisional structure is adopted the lower divisions get a huge amount benefit from the top levels. The disadvantage of this type of structure is that it may lead to increase in expenditure of the company and may lead to more tax payment.
Matrix structure
In this particular organizational structure, individuals are grouped into two different operational approaches. The structure is very versatile and complex at the same time which makes it perfect for large companies having operational units all around the world. It is a very dynamic management structure and helps in easy sharing of information among the departments. In this structure, the specialization of individuals working can also increase. As this is a very complex structure so it sometimes leads to conflict between the employees. It may also lead to complexity in the flow of command from the top to lower levels.
Team based structure
This organizational structure is comparatively new and is not adopted by many organizations. In this organizational structure of atom constitutes of individuals having a common set of skills and goals. In a team, there are individuals from different functional areas. An organization constitutes of many teams and the team members change over time. Though this structure includes less hierarchy, it will still have some management levels within each team. There are many argue regarding this organizational structure and any say that the word ‘team’ is not exactly perfect as it is merely a group of people working to achieve a common goal.
Network structure
This is also a comparatively new organizational structure and contains less hierarchy and is decentralized. In this structure, the manager is the person who controls external as well as the internal relationship of the firm. The key point of this structure no maintains a good social relationship with others. The communication flow in this structure is very effective. In this structure, the control span is wider as it is decentralized. As it is a fluid structure it can lead to complexity in the organization.
So the above mentioned organizational structures are very common and are widely adopted by many companies all around the world. A company must choose the organizational structure very wisely as it adversely affects the future of the company. A company not having a proper organizational structure will have a weak management system and thus the flow of information among the departments will also be improper. It may lead to late decision making or disputes among individuals working. Though network structure and team structure is comparatively new but is adopted by many well-known MNCs. A team organizational structure also helps in promoting team spirit and goals are reached quickly.