1) Hierarchical Structure

The hierarchical model is the most popular organizational chart type. There are a few models that are derived
from this model. In a hierarchical organization structure, employees are grouped with every employee having
one clear supervisor. The grouping is done based on a few factors, hence many models derived from this.
Below are few of those factors

 Function – employees are grouped according to the function they provide. The below image shows a
functional org chart with finance, technical, HR and admin groups.
 Geography – employees are grouped based on their region. For example in USA employees might be
grouped according to the state. If it’s a global company the grouping could be done according to countries.
 Product – If a company is producing multiple products or offering different services it can be grouped
according to the product or service.
2) Functional Organizational Structure

One of the most common types of organizational structures, the functional structure departmentalizes an
organization based on common job functions.

•An organization with a functional org structure, for instance, would group all of the marketers together in one
department, group all of the salespeople together in a separate department, and group all of the customer service
people together in a third department.

•The functional structure allows for a high degree of specialization for employees, and is easily scalable should
the organization grow. Also this structure is mechanistic in nature -- which has the potential to inhibit an
employee's growth -- putting staff in skill-based departments can still allow them to delve deep into their field
and find out what they're good at.
3). Product-Based Divisional Structure

• A divisional organizational structure is comprised of multiple, smaller functional structures (i.e. each division
within a divisional structure can have its own marketing team, its own sales team, and so on). In this case -- a
product-based divisional structure -- each division within the organization is dedicated to a particular product
line.
• This type of structure is ideal for organizations with multiple products and can help shorten product
development cycles. This allows small businesses to go to market with new offerings fast.
4. Market-Based Divisional Structure

• Another variety of the divisional organizational structure is the market-based structure, wherein the divisions
of an organization are based around markets, industries, or customer types.
• The market-based structure is ideal for an organization that has products or services that are unique to
specific market segments, and is particularly effective if that organization has advanced knowledge of those
segments. This organizational structure also keeps the business constantly aware of demand changes among
its different audience segments.
5. Geographical Divisional Structure

• The geographical organizational structure establishes its divisions based on geography. More specifically, the
divisions of a geographical structure can include territories, regions, or districts.
• This type of structure is best-suited to organizations that need to be near sources of supply and/or customers
(e.g. for deliveries or for on-site support). It also brings together many forms of business expertise, allowing
each geographical division to make decisions from more diverse points of view.
6. Process-Based Structure

• Process-based organizational structures are designed around the end-to-end flow of different processes, such
as "Research & Development," "Customer Acquisition," and "Order Fulfillment." Unlike a strictly functional
structure, a process-based structure considers not only the activities employees perform, but also how those
different activities interact with one another.
• Process-based organizational structure is ideal for improving the speed and efficiency of a business, and is
best-suited for those in rapidly changing industries, as it is easily adaptable.
7. Matrix Structure

Unlike the other structures we've looked at so far, a matrix organizational structure doesn't follow the
traditional, hierarchical model. Instead, all employees (represented by the green boxes) have dual reporting
relationships. Typically, there is a functional reporting line (shown in blue) as well as a product- based reporting
line (shown in yellow).
The main appeal of the matrix structure is that it can provide both flexibility and more balanced decision-
making (as there are two chains of command instead of just one). Having a single project overseen by more than
one business line also creates opportunities for these business lines to share resources and communicate more
openly with each other -- things they might not otherwise be able to do regularly.
8. Circular Structure

• While it might appear drastically different from the other organizational structures highlighted in this section,
the circular structure still relies on hierarchy, with higher-level employees occupying the inner rings of the
circle and lower-level employees occupying the outer rings.
• From an ideological perspective, a circular structure is meant to promote communication and the free flow of
information between different parts of the organization. Whereas a traditional structure shows different
departments or divisions as occupying individual, semi-autonomous branches, the circular structure depicts
all divisions as being part of the same whole.
9. Flat Structure

• While a more traditional organizational structure might look more like a pyramid -- with multiple tiers of
supervisors, managers and directors between staff and leadership, the flat structure limits the levels of
management so all staff are only a few steps away from leadership. It also might not always take the form or
a pyramid, or any shape for that matter.
10. Network Structure

• A network structure is often created when one company works with another to share resources -- or if your
company has multiple locations with different functions and leadership. You might also use this structure to
explain your company workflows if much of your staffing or services is outsourced to freelancers or multiple
other businesses.
•The structure looks nearly the same as the Divisional Structure, shown above. However, instead of offices, it
might list outsourced services or satellite locations outside of the office.

•If your company doesn't do everything under one roof, this is a great way to show employees or stakeholders
how outsourcing of off-site processes work. For example, if an employee needs help from a web developer for a
blogging project and the company's web developers are outsourced, the could look at this type of chart and
know which office or which person to contact outside of their own work location.