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Organizational Structures

Janice Encelatah

Organizational structure is the method by which work flows through an organization. It allows groups to work together within their individual functions to manage tasks.

Elements of Organizational Structures

  • Job design
  • Departmentation
  • Delegation
  • Span of control
  • Chain of command

These elements comprise an organizational chart and create the organizational structure itself.

1. Hierarchical Organizational Structure

Hierarchical organizational structure is the most preferred one among other models.

Organizations that use a traditional hierarchical structure rely on a vertical chain of command as the prime method of organizing employees and their responsibilities.

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2.Horizontal/ Flat Organizational Structure

Horizontal or flat organizational structure is suitable for organizations that have the least number of levels of hierarchy. They usually have no middle management, and the executives are directly in touch with the staff.

It is mostly used by start-ups and small businesses and probably cannot be used any more once the company starts to grow.

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3.Matrix Organizational Structure

A matrix structure combines the functional and divisional structures to create a dual-command situation

In a matrix structure, an employee reports to two managers who are jointly responsible for the employee's performance.

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4.Functional Organizational Structure

Functional organizational structure resembles the traditional hierarchical structure. However in a functional structure, the organization is divided into smaller departments that work for particular fields of operation.

So each one of them has managers who are responsible for reporting about their department to the executives who are in a higher position.

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5.Divisional Organizational Structure

Divisional organizational structure is mostly used by larger companies. In this structure, each organizational function forms a division and they work autonomously with their own resources.

Divisions could be formed as market-based, product-based, or geography-based according to the needs of the company.

6.Network-Based Organizational Structure

Network-based organizational structure is a contemporary way of configuration. It allows a central organization to work with various types of external organizations for its needs.

The communication between the organizations relies on mutual reliance and interest rather than hierarchy.

Organizational Struture

Summary

Type of organizational struture?

Elements of organizational struture?

what is Oraganizational struture?