 Organizations are set up in
specific ways to accomplish
different goals, and the structure
of an organization can help or
hinder its progress toward
accomplishing these goals.
 The vertical organization has a structure
with power emanating from the top down.
 Well-defined chain of command with a
vertical organization, and the person at the
top of the organizational chart has the
most power.
 Horizontal organization has a less-defined
chain command.
 Employees across lines have similar input
into how the organization is run.
 Is set up so that each portion of the
organization is grouped according to its
purpose.
 A functional structure is one of the most
common organizational structures. Under
this structure, the organization groups
employees according to a specialized or
similar set of roles or tasks.
 Used in larger companies that operate in a
wide geographic area or that have separate
smaller organization within the umbrella
group to cover different types of products
or market areas.
 The divisional structure is a type of
organizationalstructure that groups each
organizational function into adivision.
These divisions can correspond to either
products or geographies.
 A hybrid of divisional and functional structure.
 Allows for the benefits of functional and
divisional structure to exist in one
organization.
 A matrix organizational structure is a company
structure in which the reporting relationships
are set up as a grid, or matrix, rather than in
the traditional hierarchy. In other words,
employees have dual reporting relationships -
generally to both afunctional manager and a
product manager
Types of organization structures

Types of organization structures

  • 2.
     Organizations areset up in specific ways to accomplish different goals, and the structure of an organization can help or hinder its progress toward accomplishing these goals.
  • 3.
     The verticalorganization has a structure with power emanating from the top down.  Well-defined chain of command with a vertical organization, and the person at the top of the organizational chart has the most power.
  • 6.
     Horizontal organizationhas a less-defined chain command.  Employees across lines have similar input into how the organization is run.
  • 9.
     Is setup so that each portion of the organization is grouped according to its purpose.  A functional structure is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks.
  • 12.
     Used inlarger companies that operate in a wide geographic area or that have separate smaller organization within the umbrella group to cover different types of products or market areas.  The divisional structure is a type of organizationalstructure that groups each organizational function into adivision. These divisions can correspond to either products or geographies.
  • 14.
     A hybridof divisional and functional structure.  Allows for the benefits of functional and divisional structure to exist in one organization.  A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships - generally to both afunctional manager and a product manager

Editor's Notes

  • #4 A vertical organization structure is one that relies on managers to command and control their employees' work. A business owner is typically at the top of a vertical chain of command.