Matrix. The third main type of organizational structure, called the matrix structure, is a hybrid of divisional and functional structure. Typically used in large multinational companies, the matrix structure allows for the benefits of functional and divisional structures to exist in one organization.

1. Types Of Organizational
Structure
• Harmendarsingh Tanwar
Batch: Kaizen Sigma

2. Organizational Structure
Organization structure is a setup or a framework which
determines:
• The hierarchy of lines of authority
• Function
• Workflow
• Reporting system in an organization

3. Types of Organizational Structure
• Functional Structure
• Divisional Structure
• Matrix Structure

4. Functional Structure
• Most commonly used type of organizational structure
• Organization is grouped into various departments
• Department can rely on the talent and knowledge of its workers and support itself.
• Marketing department, sales department and a production department

5. Divisional Structure
• Organization is divided into various divisions where people with diverse skills are kept
together in the form of groups by a similar product, service or geographic location, and
each division itself is capable of doing the task on its own
• Divisional structure typically is used in larger companies that operate in a wide
geographic area or that have separate smaller organizations
• Example: Dell USA, Dell India, etc.

6. Matrix Structure
• Hybrid of divisional and functional structure
• Resources can be shared across various projects as well as functional
divisions
• High level of motivation and cohesiveness as goal shared is common