Types of organizational structures:
Several types of organizational structures have been made for the sake of work simplicity. It is necessary to have an organizational structure in order to become an effective organization. An organizational structure is none other than a structure that describes the hierarchy as well as the exposure arrangement in the organization. Many times, organizational structure is also regarded as organizational chart. Many companies follow the different types of organizational structures based on the diversity of things. This variety may include environmental districts, geographical regions, materials, products or the work ladder. In simple words, organizational structure could be defined as the plan that shows the organization work as well as the methodical pacts that are used for completing the work.
There are three major types of organizational structures viz. divisional structure, functional structure, and the matrix. Every organization has set of goals and organizational structure helps in achieving that goal.
Divisional structure is possible in case of large scale organizations. The organizations that work in a broad geographic regions or that contain further smaller organizations under the single roof for covering the several other sub-products or market places undergo divisional structure. This is one among the rarely used types of organizational structures. The main advantage of this structure is that it helps in meeting the needs extra rapidly and more distinctively. The lowest level of communication gets to see in this kind of structure since workers from different areas tend to avoid communications with strange workmates. Looking at the size and scope of divisional structure it can be easily guessed that this is one among the most costly types of organizational structures. However, it is possible to use divisional structures in case of businesses.
This type of structure is necessary for grouping the each piece of the organization on the basis of its principle. In a functional type of structure, several departments are engaged. For example, in any kind of business it becomes crucial to introduce the separate departments for the marketing, sales and production. However, the whole structure of an organization depends on the effectiveness of grouping. If the grouping on several departments is carried out effectively then rarely that organization would face any problem in current as well as future projects. Functional structure shows that only set up is not important for achieving the desired goal, grouped departments also have equal importance in achieving the desired aim. The only disadvantage of this structure is that the communication gets blocked between the working members of two separate departments. However, this restriction is crucial by means of long term success.
The matrix structure is one among the mostly used types of organizational structures. This is the third type of organizational structure. It is considered as the combination of functional and divisional structures. This structure is most in use in case of the large scale industries or the multinational companies. The matrix structure is important for meeting the advantages of the both functional as well as divisional structure.