The Five Types of Organizational Structure - 516 Words

Manager’s of an organization has to use structure to help the company run efficiently. â€Å"The five types of organizational structures are functional, divisional, matrix, team-based, and virtual network† (Draft, 2013, p.316). Functional structure in an organization that is developed by grouping departments by the skills, level of knowledge, activities done daily, and the resource used. â€Å"This structure places specific departments from the bottom to the top† (Draft, 2013, p.318). For example, specific departments such as: human resources, accounting, engineering, and manufacturing are placed at the top, while there are mostly seen at the bottom in other organizations. While common functions such as; people, facilities, and other resources are combined together as a single department instead of being divided into multiple departments. â€Å"Divisional structure is known by the approach of having similar skills and resources grouped together into divisions† (Draft, 2013, p.318). This occurs when a company has common goals that the company wants to achieve. This allows all skills and departments to come together and produce the goal there are looking to achieve. In this type of structure not one person is viewed as important than the next one, because it takes everyone to work together to produce the outcome the company wants to achieve. â€Å"The matrix structure uses both functional and divisional structures to run an organization† (Draft, 2013, p.321). This allows the company toShow MoreRelatedOrganizational Archetypes1355 Words   |  6 Pagesï » ¿ Organizational Archetypes Grantham University Abstract The purpose of this paper is to examine Mintzberg’s organizational archetypes and to explain why an organizational template is a good idea. It will also explore briefly, the subject of teamwork and leadership and why there are not enough true leaders today. Organizational Archetypes To be successful, an organization has to be made up of quality people. 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