Will help the reader to know the all types of the organization structure .

1. TYPES OF THE
ORGANIZATIONS
STRUCTURE
Majed Badghesh

2. ORGANIZATIONS STRUCTURE
There is 8 types of the Organizations Structure
Functional Structure
Divisional/Product Structure
Divisional/Process Structure
Divisional/Customer structure
Divisional/Regional Structure
Matrix Structure
Network Structure
Cluster Structure

3. ORGANIZATIONS STRUCTURE
Functional Structure
Functional structures are effective when:
o There are stable and undifferentiated markets with
well understood customer requirements
o There is a successful, control-focused enterprise
culture
o There is a small, single product line
o There is scale or expertise within each function
o There are long product development and life
cycles
CEO
Sales Manufacturing
Research &
Development
Accounting &
Finances

4. ORGANIZATIONS STRUCTURE
Divisional/Product Structure
o A divisional/product structure is the most
appropriate in a business where there are low
synergies between the buyers and the distribution
channels of the different divisions.
Typically, in this structure each division
o Runs as an independent business unit.
o Stakeholders perceive low synergies between
products
o There are different purchasing process/distribution
channels
o There are different operating requirements for
success
o There is a different competitive environment
CEO
Divisional
Product X
R&D
Manufacturing
Sales
Divisional
Product Y
R&D
Manufacturing
Sales
Divisional
Product Z
R&D
Manufacturing
Sales

5. ORGANIZATIONS STRUCTURE
Divisional/process structure
In this structure is the focus is on processes where
core services such as customer and distribution
services are frequently organized across the
enterprise. Internal support services are frequently
organized in this way but customer-facing services
are equally well served by this structure, which is a
good alternative to the functional structure. Process-
focused structures work well when:
There are well-defined processes serving different
customers (internal/external)
There is potential for new processes and/or radical
change to processes
CEO
Purchasing
ordering
Order
fulfillment

6. ORGANIZATIONS STRUCTURE
Divisional/Customer structure
Structures around customer segments are successful
where here are obvious customer segments defined
by need, economics, distribution, and other key
attributes. Divisional/customer structure are
effective:
Where well-defined customer segments have been
identified
When selling products/services unique to segments
When using buyer strength
When leveraging customer knowledge advantage
When requiring rapid customer service and product
cycles
When perceiving minimum efficiencies of scale in
functions or out sourcing
When promoting a strong marketing /customer-
focused culture
CEO
Government
contract
VIP Customer
contract

7. ORGANIZATIONS STRUCTURE
Divisional/Regional
CEO
Region 1
Marketing
Operations
Finance
Region 2
Marketing
Operations
Finance
Region 3
Marketing
Operations
Finance
Some companies use a regional or geographical
organizational structure, preferring to duplicate
various departments or functional areas across regions.
preferring to duplicate various departments or
functional areas across regions.
For example, a small consumer products company
may employ marketing managers in the east,
central, west and southern regions of the country.
This model works best when a company needs to focus
on more localized strategies. Competition may be unique in
each region. Additionally, customer demands may vary, with
people in various regions preferring different flavors or features.

8. ORGANIZATIONS STRUCTURE
Matrix Structure
Matric Structures typically operate in two dimensions
(for example, function and product)
and are usually one of three types: functional matrix,
balanced matrix or project matrix
Core work is project-based or the work requires
small groups of people
Projects require highly specialized skills and
knowledge;
Project skill requirements vary greatly
Labor cost is a prime economic driver

9. ORGANIZATIONS STRUCTURE
Network Structure
Network structures are valuable for fast-
moving organizations that are highly
innovative and operating in an
environment that requires speed,
flexibility and high levels of customer
focus. In network enterprises, work is
organized around team and unit delivery
to the customer is seamless
Core
Company
Engineering
Company
Manufacturing
Company
Distributer
Product
Design
Company
Marketing and
Promotion
Company

10. ORGANIZATIONS STRUCTURE
Cluster structure
The cluster model provides another example of an
organizational style idea for conditions requiring
flexibility, innovation and change. It is a
subcontracting model where, as Gareth Morgan says
in his book, Imaginization: New Mindsets for Seeing,
Organizing, and Managing, “the team at the center
steers the whole enterprise”. The subcontractors are
the clusters around the central point. Cluster
Local
government
Units
Companies
Scientific Units
Business
Environmental
Institute
Scientific
Research
Institute