The following are the various types of organization designs that we can see in contemporary organizations:
- Simple Structure
An organization with simple structure is low in specialization and formalization but high in centralization. This structure is mostly used by small businesses, in which all employees report directly to the owner.
- Functional Structure
An organization with functional structure is having similar and related occupational specialties grouped together. The strength of this structure is in the advantages obtained from work specialization.
- Divisional Structure
An organization with divisional structure is made up of self-contained units. The main advantage of this structure is that it focuses on results.
- Matrix Structure
In organization with matrix structure, specialists from functional departments are assigned to work on one or more projects led by a project manager. That is why in matrix structure, employees have at least two bosses: the project manager and the functional department manager. The main advantage of this structure is that it can facilitate coordination of a multiple set of complex and interdependent project. But still, the economies that result from keeping functional specialists grouped together are retained.
- Team-based Structure
An organization with team-based structure consists entirely of work groups or teams. There is no rigid chain of command, and team members have the authority to make decisions that affect them.