Different types of Organization structures

– Functional structure

– Divisional structure

– Hybrid structure (which includes both Functional and Divisional structure)

– Matrix structure

 Some points:

– Entrepreneurial Organization is the one in which everyone does everything.

– Functional structure is quite skin to Input based organization. It means that People are organized as per the Input/skills they bring in.

– Divisional structure is more like Output based grouping.

– Divisional structure is quite prevalent in the multi-product organizations. Individual functions exists within each org.

– The key question in Divisional structure is on what factor the output will be based on. It could be Product, Geography, Customers.

– Most large software companies are Output based.

– Matrix structure somewhat violates- One person0One boss notion.

– ABB was one of the first company to have imbibed Matrix structure. To make it work they prepared and circulated huge documentation on how to make it work. US Defense is another example.

[This blog is captured from “Organization Structure and Design” class notes (by Prof Sourav Mukherji . Some information referred from Wikipedia/other listed sites.]