What are the different types of organisational structures?

Organisational structures can be categorised into four main types: functional, divisional, matrix, and flat.

The functional structure is one of the most common types of organisational structures. In this structure, the organisation is divided into different departments based on their functions. For example, a company might have a marketing department, a sales department, a human resources department, and so on. Each department is headed by a functional manager who is an expert in that particular field. This structure promotes efficiency and specialisation but can lead to a lack of communication between departments.

The divisional structure, on the other hand, groups together activities related to a specific product or service, or a particular geographical area. Each division operates as a semi-autonomous unit with its own resources and objectives. This structure is often used by large multinational corporations that operate in diverse markets. It allows for flexibility and a focus on specific market needs, but can result in duplication of resources.

The matrix structure is a blend of the functional and divisional structures. It is designed to combine the benefits of both, with employees reporting to two managers: one from the functional department and one from the product or project department. This structure fosters collaboration and communication, but can also lead to confusion and conflicts over authority.

Lastly, the flat structure, also known as horizontal or flatter structure, has fewer levels of management and a wider span of control. This structure encourages employee involvement in decision-making, promotes faster communication and can lead to higher job satisfaction. However, it can also result in a lack of clear responsibility and authority.

Each of these structures has its own strengths and weaknesses, and the choice of structure will depend on the nature and needs of the organisation.