4.2.5 Organisational structures

Organizational structures refer to the formal system of authority and communication within an organization. There are several types of organizational structures, including:
1. Hierarchical/functional structure: This structure is based on a clear chain of command and division of labor, with each employee reporting to a single superior.
2. Divisional structure: This structure groups the organization into separate divisions based on product, geography, or customer type.
3. Matrix structure: This structure combines features of both functional and divisional structures, with employees reporting to both a functional manager and a product manager.
4. Flat/horizontal structure: This structure has fewer levels of hierarchy and more decentralized decision making, with employees having more autonomy and responsibility.
5. Team structure: This structure is based on cross-functional teams, with employees working together to achieve a common goal.
6. Network structure: This structure is based on a network of relationships with external organizations, rather than a traditional hierarchy.
7. Virtual structure: This structure is based on remote and flexible work arrangements, with employees working from different locations.