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Top Three Popular Types of Organizational Structure

> Org Chart Knowledge > Top Three Popular Types of Organizational Structure
Posted by Pemala Pfeiffer | 11/24/2020
Three most commonly-used organizational structures types including functional, hierarchical and matrix organizational structure will be introduced in this article.

Whether an organization is large or small, they need a defined organizational structure to help or hinder its progress toward accomplishing these goals. Here are three main organizational structure types:

  • Functional Organizational Structure
  • Hierarchical Organizational Structure
  • Matrix Organizational Structure

Three Most Commonly-used Organizational Structures Types

Following are detailed introduction for those three organizational structure types.

1. Functional Organizational Structure

Functional Organizational Structure

Functional Organizational Structure, one of the most common types of organizational structures, groups individuals by specific functions performed. The advantage of this type of structure is that It works perfectly when small companies are heavily project focused.

2. Hierarchical Organizational Structure

Hierarchical Organizational Structure

Hierarchical Organizational Structure, is often used in larger companies that operate in a wide geographic area.

3. Matrix Organizational Structure

Matrix Organizational Structure

Matrix Organizational Structure is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally and vertically. It is often used when the firm has to be highly responsive to a rapidly changing external environment.

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