What Are the Different Types of Organizational Structures?


Quick Answer

Traditional types of organizational structures include matrix, functional, product, customer and geographic structures. Alternatively, organizational structure can be explained by how deep its hierarchy reaches, from traditional top-down to completely flat, where all members of the organization have an equal say in how it is run.

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Full Answer

A matrix structure uses both vertical and horizontal reporting to facilitate activities between different projects. A functional structure splits an organization into groups based on purpose. A product structure focuses divisions within the organization around a product or idea. A customer structure allows organizations to focus externally on each of the groups they hope to serve. A geographic or divisional structure separates a large organization by region, giving each location autonomy.

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