Types of Organizational Structures

An organizational structure is an institution with strategies, policies, commonly shared values and a specific set of activities working together toward a single objective. Businesses adopt various organizational models that best match their agendas.

Line Organizational Structure

Line organizational structures are informal environments where decision-makers interact directly with their staff, and decisions are implemented quickly.

Functional Organizational Structures

Functional organizational structures are concerned with matching a propensity for a skill set with a functional department; for example, placing employees displaying excellent interpersonal skills in a customer service department.

Bureaucratic Organizational Structures

Bureaucratic organizational structures are mature and formal structures where decision-making is implemented from the top-down. Bureaucratic structures involve a complex hierarchical system divided into departments and divisions which are critical to efficiently carrying out a set of complex tasks to achieve a main objective.

Network Organizational Structures

Network structures are concerned with outsourcing jobs, tasks and/or activities to outside entities to better achieve their goals; reduce operating costs; take advantages of price discrepancies in the marketplace; export liability; and harness volunteer-based talent.

Matrix Organizational Structures

Matrix organizational structures are a combination of functional and line organizational structures. Matrix structures are the most complex of all the structures, and are resilient to change. Matrix organizational structures engineer groups with specific talents and services, using both line and functional departments to best accomplish particular tasks.

References

• Matrix Organization Structure
• Organizational Structures
• Network Structure in Virtual Organizations