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:
Following are detailed introduction for those three organizational structure types.
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 perfect when small companies are heavily project focused.
Hierarchical Organizational Structure, is often used in larger companies that operate in a wide geographic area.
Matrix Organizational Structure is a hybrid of divisional and functional structure, which is used for reporting levels both horizontally as well as vertically. It is often used when the firm has to be highly responsive to a rapidly changing external environment.