B. 2.2 Organizational Structures

Hierarchical Structure

Traditional, top-down structure with multiple layers of management and a clear chain of command

Functional Structure

Structure that groups employees based on their specialized functions or departments (e.g., marketing, finance, production, HR)

Multidivisonal/Divisional Structure

Organizes the company into separate, semi-autonomous divisions, often based on products, services, geographical regions, or customer segments. Each division typically has its own functional departments

Simple Structure

Structure characterized by low departmentalization, wide spans of control, centralized authority, and little formalization common in businesses and start-ups

Flat Structure

Has few or no levels of middle management between staff and the executive team, promoting direct communication and greater employee autonomy

Tall Structure

Structure characterized by many layers of management, narrow spans of control, and a long chain of command

Matrix Structure

Structure that combines elements of functional and product/project structures where employees report to 2 managers

Team-Based Structure

Structure that organizes work around teams rather than traditional departments. These teams are empowered to make decisions and are often cross-functional

Project Task Force

A temporary, cross-functional team assembled to complete a specific project or address a particular issue, typically with a defined lifespan

Network Structure

A decentralized and flexible structure that leverages external partners, contractors, and alliances to perform various functions. The core organization usually focuses on its core competencies

Centralized Structure

Structure where decision-making authority is concentrated at the top level of the organization

Decentralized Structure

Structure where decision-making authority is distributed to lower levels of management and employees throughout the organization

Mechanistic Structure

Structure characterized by high specialization, rigid departmentalization, a clear chain of command, narrow spans of control, high formalization, and centralized decision-making

Organic Structure

Structure characterized by low specialization, loose departmentalization, cross-functional teams, wide spans of control, low formalization, and decentralized decision-making