7 Types of Organizational Structures

Last updated on September 29, 2021 by

A well-organized and planned business design simplifies responsibility connections and promotes excellent communication, resulting in an effective and productive work process, regardless of the firm’s size. Every company should have a well-defined organizational structure. The board of directors and management should be the committee that decides on the types of organizational structures that would promote better performance. That being said, we’ve listed the most frequently used organizational structures you may use.

Most Common Organizational Structure

7 Most Common Functional Organizational Structure

Hierarchical Organizational Structure

purpose of organizational chart

The elements of organizational structure start at the top and work their way down. Most businesses utilize a pyramid-shaped chart as a hierarchical framework. Each employee has a supervisor, starting with the CEO or management and working their way down to the entry-level and low-level staff. Also, other huge associations utilize a chain of command to decide the degree of control representatives have over their work as well as their position comparative with others.

Horizontal or flat org structure

types of organizational structures

The purpose of an organizational chart like this one is fewer tiers of administration or directors over workers in a flat organizational structure. Most people who have worked for a small business, such as a startup, are familiar with this arrangement. With executives and employees, there will be only one layer of middle managers, although in many cases, there are still no intermediate supervisors at all.

Functional Organizational Structure

Functional Organizational Structure

Similar to hierarchical organizational structure, these types of organizational structures is also one of the most well-known functional organizational structure. This type of structure is administered on a department-by-department basis such as Human Resources, bookkeeping, and another department that are coordinated by isolating every one of these spaces and overseeing them freely of the others.

Matrix Organizational Structure

Matrix Organizational Structure

Companies most often utilize a matrix organizational structure to divide resources and manpower across different businesses. Within the workplace, this sort of organization may have both benefits and drawbacks. The purpose of an organizational chart is to have the advantages and disadvantages of a framework hierarchical design. As a result, it can help managers decide whether this sort of construction is best for their organization.

Product Organizational Structure

product organization structure

Another organizational structure includes on the list is Product Organizational Structure. It is to be coordinated by a particular item type. Every item bunch falls inside the detailing design of a leader, and that individual regulates everything identified with that specific product offering. The elements of organizational structure are frequently valuable when abilities should be shared across divisions to do a job and allow organizations to utilize a wide range of talents and strengths

Customer Organizational Structure

customer organizational structure

Other businesses prefer this type of organizational structure. This is done with the purpose of ensuring that a redesigned administration strategy meets specific customer expectations. The purpose of an organizational chart is that it will have actual experience with the needs of every service user while being able to ignore the needs of different marketing concepts.

Network Organizational Structure

network organizational structure

The goal of a network organizational structure is for businesses to use experts, consultants, and traders who are dispersed among satellite offices. The proper flow of the organization’s assets is coordinated by this type of structure. It is contrary to other types of organizational structures because this type of structure allows the representatives to visualize the working process, cycles, and relationships with both on-site and off-site coworkers. Also, it requires more complex relationships.

How to Create Organizational Structures Online?

GitMind Interface

This program can help you create organizational structure without bringing you any difficulties. It also offers various templates that you can choose from. GitMind has embed options for inserting pictures, which are clearly extremely fundamental elements of organizational structure. Having said that, listed below are the few simple steps in making great organizational charts.

To get started, go to the page and click “Get Started.”

Start Creating Organizational Structures

Select the “Organization” button under the “Flowchart” section.

Organizational Structures

Click the “New Flowchart” or if you want, just choose from the pre-made organizational chart.

Create New Flowchart

Modify your preferred design including adding nodes, texts, and pictures.

Once done, click the “Export” option and select the desired file format.

Saving Organizational Structures


Organizational structures show the order of the people and their social relationships, from most noteworthy to least. These outlines are regularly utilized by many organizations. It concludes that GitMind can help you design various types of organizational structures. It can help you become more productive and make creating and organizing charts much easier.

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Posted by: on to Tips and Resources. Last updated on September 29, 2021

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