4 Examples of Organizational Structure

An organizational structure is a form of division of functions, responsibility and authority, within an organization, that help to achieve the objectives; there are different types according to the hierarchical needs of the company, represented in organizational charts; therefore, many examples of organizational structure can be found.

An organizational structure is a way of organizing the internal activities of an organization through hierarchical positions, with very well-defined functions and responsibilities, which allow all activities to be executed efficiently to achieve the objectives of an entity.

Although there are many types of organizational structure, each company adopts the model of organizational structure that best suits your needs, which can be easily represented in a Organization chart organizational to visually identify the chain of command for the delegation of functions.

To easily understand what they are about, let's see the following 4 examples of organizational structure.

What is an organizational structure?

An organizational structure refers to the how activities are divided, grouped, and coordinated within an organization to achieve its goals. In other words, it is about how a company organizes itself to carry out its work efficiently and effectively.

The organizational structure includes the hierarchy of authority, roles and responsibilities of each job, the decision making processes, the policies and procedures, and the communication and coordination systems between the different departments and levels of the organization.

An effective organizational structure must enable the organization to meet its objectives efficiently and effectively, promote coordination and collaboration between employees and departments, and enable clear and effective communication across the organization. organization.

4 Examples of organizational structure

According to the type of organizational structure, the following examples are proposed:

1. Example of linear organizational structure

The linear organizational structure is a hierarchical structure in in which authority flows from the top down in a chain of command clearly defined; In this structure, employees are arranged in a continuous, ordered line according to their hierarchical level, from top executives down to lower-level workers.

In the linear organizational structure, employees have only one direct manager, and each one has a specific and clearly defined task. Lower-level employees are responsible for carrying out day-to-day tasks, while supervisors and Upper-level managers are responsible for making important decisions and for coordinating the operations of the company. organization.

This structure is suitable for companies that operate in stable and predictable environments, as it allows for centralized decision-making and a clear definition of roles and responsibilities. However, it may also have limitations in terms of flexibility and responsiveness to changes in the business environment.

2. Functional Organizational Structure Example

The functional organizational structure is a hierarchical structure in which employees are grouped according to their areas of expertise and experience. In this structure, employees doing similar jobs are grouped into departments or functional units, such as finance, human resources, marketing, production, and so on.

In the functional organizational structure, employees work under the supervision of an independent functional manager or supervisor, who has the experience and knowledge in the corresponding functional area. This structure allows for greater specialization and a clear definition of roles and responsibilities.

One advantage of the functional structure is that it can increase the efficiency and quality of work, as employees can develop specialized skills in their functional area. However, it can also lead to coordination and communication problems between functional departments due to its decentralization, which can affect the organization's ability to respond quickly and effectively to changes in the environment business.

3. Example of organizational structure by division

The division organizational structure is a hierarchical structure in which the organization is divided into independent and autonomous divisions, where each is responsible for its own operations. These divisions They can be by product, by customer, or by geographical area., where each division can have its own hierarchical structure and its own functional departments, such as finance, marketing, production, among others.

In the divisional organizational structure, each division It is headed by a manager or general director who has overall responsibility for the division. Each division operates autonomously and is responsible for its own financial and performance results.

This structure is suitable for companies that operate in multiple lines of business or geographic markets, since it allows greater flexibility and responsiveness to the specific needs and demands of each market or line of business business. However, it can also generate coordination and communication problems between the different divisions, which can affect the organization's ability to achieve its strategic objectives global.

4. Matrix Organizational Structure Example

The matrix organizational structure is a hybrid structure that combines elements of the functional structure and the project structure. In this structure, employees are grouped by their functional specialty and also by project.

In the Organizational structure matrix, employees work in interdisciplinary teams where an employee can have several bosses, one from the functional unit and another from the project. Employees have responsibilities to both their functional department and the project on which they work.

This structure is suitable for companies that need greater flexibility and responsiveness to the needs of specific projects, while maintaining a strong centralized functional structure. It enables greater collaboration and coordination between different functional departments and project teams, which can increase the efficiency and effectiveness of work.

However, it can also lead to conflicting authority and priority issues, as employees may receive conflicting orders from different bosses. Additionally, the matrix structure can be complex and difficult to manage, which can increase administrative costs.