1. Functional Structure: This type of structure divides the organization into different functional departments such as marketing, finance, operations, and human resources. Each department is responsible for a specific function and has its own hierarchy.
2. Divisional Structure: In this structure, the organization is divided into different divisions based on products, services, customers, or geographic locations. Each division operates as a separate entity within the larger organization, with its own functional departments and management.
3. Matrix Structure: This structure combines both functional and divisional structures. It creates dual reporting lines for employees so that they report to both a functional manager and a divisional manager. This allows for greater flexibility and collaboration across different functions and divisions.
4. Team-based Structure: This structure organizes the organization around self-managed teams or groups of employees who are responsible for a specific task or project. The teams have the authority to make decisions and are accountable for their performance.
5. Network Structure: In this structure, the organization focuses on building relationships with external partners, suppliers, and contractors. It relies on these external entities to carry out various functions and tasks, while the organization itself serves as a central hub.
6. Flat Structure: This structure is characterized by having few or no levels of middle management between top-level management and front-line employees. It promotes open communication, faster decision-making, and a more flexible organizational culture.
7. Hierarchical Structure: This is a traditional and widely used structure where authority and decision-making flow from top-level management down to lower levels. It usually consists of several hierarchical levels, with each level having specific responsibilities and reporting to the level above it.
Types of organizational structure in business studies
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