What Is a Job Structure?

A job structure is the basic overall hierarchy that a business uses to manage the reporting structure for each of the positions within the company. There are four basic types of job structures: departmental, functional, geographical and business unit.

A departmental organizational structure works best in companies with clearly defined department units that focus on future expansion and growth. This is the most basic type of job structure and the most common one. Typically, each department has several managers and one executive that oversees the entire department.

Functional organizational structures are more common among smaller companies, typically those with fewer than 100 employees. This structure organizes the company according to the functions and roles of individual employees. This type of company offers promotions and bonuses to encourage improved performance.

Geographical structures are typical for companies with regional branches. The advantage of this structure is that it allows each branch to have specific goals. Individual branches often have different internal structures, allowing for more flexibility in promotions and performance.

A business unit structure is a unique structure type allowing individual branches to focus on entirely different markets. An executive manager runs each unit independently. This manager, in turn, answers to company’s president.