We are constantly curious about how the structure of a large company appears. The typical organizational structure resembles a pyramid with higher-level middle management and lower-level personnel. However, not every product management consulting organization performs best when organizing its system hierarchically or chronologically.
Let’s Go Through The Seven Most Popular Organizational Structures :
1) The Hierarchical Organization
The most common organizational chart form is the hierarchical model. This model is the foundation for several other models—it organizes the employees in a hierarchical organizational structure, with each employee reporting to a single supervisor. The development of Many models is due to the categorization of a few variables—a couple of these elements. Division of employees into groups based on the services they perform. A functional org chart contains financial, technical, HR, Product Managers, and admin groups.
The division of employees is into groups based on their geographic location. Employees in the United States, for example, maybe classified by state. If the firm is worldwide, the grouping is as per the country.
Product – If a firm produces many goods or provides various services, the division is categorized based on the product or service. These are just rare additional frequent ones, but plenty more. Most of these categories have an org chart. In big enterprises, this is the most common organizational structure. Corporations, governments, and organized religions, for example, are hierarchical organizations with several levels of administration, power, and authority.
2) The Matrix Structure
The reporting links in a Matrix organizational structure are as a grid, or matrix, rather than a typical hierarchy. It is a style of corporate management in which persons with comparable talents are grouped for work assignments, resulting in several managers reporting to the same person.
All engineers, for example, are assigned to a single engineering department and report to a single Product Manager. However, the same engineers may be transferred to several projects and report to different Product Managers. As a result, it requires the specific engineers to collaborate with many supervisors as part of their employment.
3) The Horizontal Structure
It is a form of organizational chart commonly used by small businesses and start-ups. The concept is almost tough to apply to larger firms with several projects and staff members. The essential aspect of this structure is that it eliminates numerous tiers of middle management. Employees can make judgments rapidly and autonomously. As a result, a well-trained staff may be more productive by directly participating in decision-making.
It works effectively for small businesses since labor and effort are reasonably apparent in small businesses. It isn’t to say that employees don’t have bosses. The main difference is that decision-making power is shared, and employees are held accountable for their decisions.
To conclude, before deciding on a suitable organizational chart, it is necessary to understand your company’s current organizational structure.
4) The Network Structure
The network organizational structure enables managers and top-level management to visualize internal and external links. They are less hierarchical than other systems, but they are also more decentralized and adaptable. The basis of the network structure concept is on social networks. It’s formed on open communication and dependable internal and external partners. Consider the network structure more elegant than other systems because it has fewer tires, greater control, and a bottom-up decision-making flow. Because of its intricacy, using a Network organizational structure might be a disadvantage at times.
5) The Divisional Organizational Structure
Each division relates to products or geographic areas within a divisional organizational structure. It equips each division with the resources and functions required to support the product line and geographic location.
The multi-divisional org chart structure is another type of divisional org chart layout. M-form is another name for it. It’s a legal structure wherein one parent company holds several subsidiaries, each using the parent’s brand and reputation. The real benefit of the divisional structure is the independent operational flow, which means that if one firm fails, the others do not go out of business. It’s not without flaws, either. Separating specialized operations might result in operational inefficiencies. Another downside is the increase in accounting taxes.
6) Line Organizational Structure
The line structure is one of the most fundamental types of organizational structure. Its power is distributed from the highest to the lowest levels. These organizations, unlike other institutions, do not provide specialized or assisted services. The chain of command and the heads of each department impact their respective departments. Its self-contained department organization is its most distinctive characteristic. Line officers can make autonomous decisions because of the coherent structure.
The real benefit of a line organizational structure is excellent communication, which provides organizational stability.
7) Team-Based Organizational Structure
Teams working toward a shared objective while completing their respective jobs comprise team-based organizational structures. They are less hierarchical, and their arrangements are more flexible, promoting problem-solving, decision-making, and collaboration.
Many industries have changed as a result of team-based organizational structures. Due to globalization, individuals from various sectors worldwide may now collaborate to produce goods and services. To keep prices down while producing high-quality products, manufacturing companies, in particular, must interact with suppliers worldwide.
To Sum It Up!
The sorts of Organizational Charts (or organogram structure types, as some name them) depicted above are the most widely utilized. There are, however, a plethora of other models. Each has its benefits and drawbacks, depending on the scenario and organization. With the types mentioned above, you can experiment with alternative models.