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I think that it's with a viral infection.

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types of organizational charts

7 types of organizational structures (+ org charts for implementation)

Reading time: about 8 min

Posted by: Shannon Williams

Types of organizational structures

Hierarchical org structure

Functional org structure

Horizontal or flat org structure

Divisional org structures (market-based, product-based, geographic)

Matrix org structure

Team-based org structure

Network org structure

At some point, you have likely seen an organizational chart for your company. And we can probably guess what it looked like.

The typical org chart looks like a pyramid, your C-level executives at the top with lines stretching down to middle management and finally staff-level employees.

But not every company functions best with a hierarchical organizational structure. Many types of organizational charts exist because many types of organizational structures exist.

Let’s go through the seven common types of org structures and reasons why you might consider each of them.

1. Hierarchical org structure

hierarchical org chart example

Hierarchical Org Chart Example (Click on image to modify online)

The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart. It’s the most common type of organizational structure––the chain of command goes from the top (e.g., the CEO or manager) down (e.g., entry-level and low-level employees) and each employee has a supervisor.

Pros

Better defines levels of authority and responsibility

Shows who each person reports to or who to talk to about specific projects

Motivates employees with clear career paths and chances for promotion

Gives each employee a specialty

Creates camaraderie between employees within the same department

Cons

Can slow down innovation or important changes due to increased bureaucracy

Can cause employees to act in interest of the department instead of the company as a whole

Can make lower-level employees feel like they have less ownership and can’t express their ideas for the company

2. Functional org structure

functional org chart example

Functional Org Chart Example (Click on image to modify online)

Similar to a hierarchical organizational structure, a functional org structure starts with positions with the highest levels of responsibility at the top and goes down from there. Primarily, though, employees are organized according to their specific skills and their corresponding function in the company. Each separate department is managed independently.

Pros

Allows employees to focus on their role

Encourages specialization

Help teams and departments feel self-determined

Is easily scalable in any sized company

Cons

Can create silos within an organization

Hampers interdepartmental communication

Obscures processes and strategies for different markets or products in a company

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