the framework that defines how a company operates, including its structure, roles, and processes for achieving goals.
Organizational systems
types of organizational structures
A functional structure is an organizational design that groups employees into departments based on their specialized skills and expertise, such as marketing, finance, or human resources. This structure creates specialized departments, each headed by a manager who leads their team and reports to senior leadership, like the CEO.
Functional Structure
types of organizational structures
A ——– or geographic organizational structure arranges an organization by physical location, dividing it into divisions based on region. Each division, like a sales team or an entire business unit, operates as a semi-autonomous company with its own set of functions (e.g., marketing, sales, production) to address the unique needs and characteristics of that specific area.
Territorial Structure
types of organizational structures
A ———– organizational structure is a system with a clear chain of command where authority and responsibility flow from the top down, resembling a pyramid. Information and decisions move from senior leadership at the top to employees at the bottom, while performance information moves up. This structure is common in large organizations like governments and corporations because it establishes a clear line of authority, though it can lead to slow decision-making.
Hierarchical Structure
types of organizational structures
A flat organizational structure is a system in which there are few or no levels of middle management between employees and top executives. It emphasizes direct communication and allows employees to work closely with leaders, creating a more open and collaborative workplace
Flat Structure
types of organizational structures
A ——– organizational structure is a type of business structure in which a company is divided into semi-autonomous divisions—each responsible for a specific product line, market, or geographic area. Each division operates like its own mini-company, with its own functional departments such as marketing, finance, HR, and production.
Divisional Structure
types of organizational structures
A network organizational structure is a flexible, decentralized structure where a central company (or core organization) coordinates relationships with external partners, contractors, or subsidiaries to perform various functions. Instead of having all departments in-house, the company relies on a network of independent organizations or teams that work together to achieve shared goals
Network Structure
types of organizational structures
A ——– organizational structure — also known as a line structure or scalar structure — is the oldest and simplest type of organizational structure. It features a clear, direct chain of command where authority flows vertically from top management down to the lowest level of employees
Line structure
types of organizational structures
A team-based organizational structure is a modern, flexible design that groups employees into cross-functional teams rather than traditional departments. These teams work collaboratively toward specific goals or projects and often have significant autonomy in decision-making.
Team-based structure
types of organizational structures
A ——- organizational structure (also called a radial or wheel structure) is a non-hierarchical model that places leadership at the center and employees in outer circles based on roles or responsibilities — rather than at the top of a traditional pyramid.
Instead of a top-down command chain, information and decisions flow outward and inward between the center and outer circles, symbolizing collaboration, unity, and shared purpose
Circular structure
types of organizational structures
A ———– organizational structure (also called a process-oriented structure) is designed around the flow of work or processes that deliver value to customers — rather than traditional departments like marketing, finance, or HR.
In this structure, the organization is grouped according to end-to-end business processes
Process-based structure
types of organizational structures
A ——— organizational structure is a hybrid design that combines functional and project-based structures — allowing employees to report to two managers: one by function (such as Marketing or Engineering) and one by project or product (such as Project Alpha or Beta). This structure is commonly used in complex, dynamic organizations that need to balance efficiency (functional expertise) with flexibility (project responsiveness).
MATRIX STRUCTURE
————– are the fundamental building blocks that constitute a company, including people, tasks, technology, structure, and strategy. These elements work together to achieve common goals, with the structure formalizing roles, responsibilities, and communication channels, while the strategy guides the overall directions.
Management
Employees
Facilities & Equipment
organizational components
are a set of formal rules or guidelines created by an organization to direct the actions, decisions, and behavior of its members. They help ensure fairness, consistency, and efficiency in the workplace and guide employees in performing their duties properly.
Organizational Policies
organizational PRINCIPLES
means dividing work into smaller tasks so that each employee focuses on a specific type of job or skill. It improves efficiency and expertise
Specialization
organizational PRINCIPLES
———- is the grouping of jobs and employees based on similar tasks, functions, or goals within the organization.
Departmentalization
organizational PRINCIPLES
——– refers to the line of authority within an organization that shows who reports to whom. It ensures order and accountability.
Chain of Command
organizational PRINCIPLES
———- is the number of employees that a manager or supervisor can effectively oversee
Span of Control
organizational PRINCIPLES
———- means decision-making is concentrated at the top level of management.
———– means decision-making is distributed among various levels or departments
Centralization / Decentralization
