HR Glossary

Organisation Structure

An organizational structure is a system that layouts how the activities in the organisation are steered to achieve the long term goals of the organisation. The activities can be related to the rules, responsibilities and roles and also decides how the information will flow to the different levels in the company. Put simply, organisation structure is what sets the hierarchy in the organisation.

There are typically four kinds of organisational structures-

  • Administrative structure
    In this structure, a specific level of regularisation is required.Administrative structures include a specific level of regularization. They are preferably suitable for greater scale or larger multifaceted organizations, most compelling on an extraordinary structure. The stress between non- administrative and administrative structures is resounded difference between gradual and automatic structures.
  • Functional structureIN functional structure, the company segregates employees according to similar or specialized set of tasks and roles. This is structure is one of the most common and widely used one.
  • Matrix structure
    The individual employees are seen reporting to more than one leader in Matrix structure. This relationship or multiple reporting method is described as dotted line or solid line reporting.
  • Divisional structure
    In divisional structure the activities of business are used as a parameter to group employees. The measures can be related to product, service, market etc. It is generally used by companies that have many regions, products and markets.