Five types of organization structures

Large international organisation bureaucratic structure: Precision, speed, unambiguity, … strict subordination, reduction of friction and of material and personal costs- these are raised to the optimum point in the strictly bureaucratic administration. They are better suited for more complex or larger scale organizations, usually adopting a tall structure. The Weberian characteristics of bureaucracy are:

Five types of organization structures

Traditional hierarchy There are many challenges with this model but to name a few. Communication typically flows from the top to the bottom which means innovation stagnates, engagement suffers, and collaboration is virtually non-existent. This type of environment is riddled with bureaucracy and is extremely sluggish.

This is why the hierarchy is perhaps the biggest vulnerability for any organization still employing it. It opens up the doors for Five types of organization structures and new incumbents to quickly take over.

There is also no focus on the employee experience in this type of a structure and as organizations around the world are exploring alternative organizational models, those still stuck with the hierarchy are going to have one heck of a time trying to attract and retain top talent. This is the model I firmly believe is on its way out of the world of work and will be replaced by one of the models below.

As you can see there are fewer layers and that arrows point both ways. Obviously a very simplified way to look at this type of a company but hopefully it gets the point across. For larger organizations this is the most practical, scalable, and logical approach to deploy across an entire company.

This is the model that most large and many mid-size organizations around the world are moving towards. In flatter companies there is still a strong focus on communication and collaboration, improving the employee experience, challenging the status quo around traditional management models, and the like.

But instead of completely reinventing the entire company and introducing a radical new structure and approach to work, it achieves similar results in far shorter term and with much less effort and resource allocation. Flat organizations Unlike any other corporate structure that exists, flat companies are exactly that…flat.

Meaning there are usually no job titles, seniority, managers, or executives. Everyone is seen as equal. Flat organizations are also oftentimes called or referred to as self-managed organizations there can be some differences but for our case we will put them together.

Entrepreneurial

The most famous example of this comes from Valve, the gaming company responsible for classics such as Half-Life, Counter-Strike, Portal, and many others. At Valve there are no job titles and nobody tells you what to work on. Instead all the employees at Valve can see what projects are being worked on and can join whichever project they want.

If an employee wants to start their own project then they are responsible for securing funding and building their team.

Organizational structure can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. [3] . Five Major Types of Organizational Structures for a Business by Chrystal Doucette - Updated June 28, Some companies contract most work to outside parties, while . Henry Mintzberg is a renowned management theorist who developed a list of five basic organizational types. He identified the various organizations as a result of their blend of strategy.

For some this sounds like a dream for others, their worst nightmare. Smaller and some medium size companies might be able to operate in this type of an environment but when you get to organizations with thousands of employees then it becomes challenging.

Flatarchies Somewhere in between hierarchies and flat organizations lie flatarchies. These types of companies are a little bit of both structures. They can be more hierarchical and then have ad-hoc teams for flat structures or they can have flat structures and form ad-hoc teams that are more structured in nature.

Organizations with this type of structure are very dynamic in nature and can be thought of a bit more like an amoeba without a constant structure.

This type of a structure can work within any type of company large or small. However a flatarchy is to be thought of as a more temporary structure which creates isolated pockets of new structures when needed, such as in the case of developing a new product or service.

This model is quite powerful yet also more disruptive than the other structures explored. The main benefit here is the focus on innovation which is quite a strong competitive advantage in the future of work.

My opinion is that holacracy can be more viable for smaller or medium size organizations or perhaps larger organizations that have started off with holacracy as their base operating model.

Five types of organization structures

Holacracy is still very much an emerging structure with a lot of inserting concepts but we still need more case studies and examples over a longer period of time. Zappos will perhaps give us the best look at what a transformation to holacracy can look like, but I suspect we will need to wait another 2 years to really get a sense of the impact Jacob Morgan is a keynote speaker, author most recently of The Future of Workand futurist.

Jacob explores how the world of work is changing and what the future of work is going to look like Email me A weekly Email with the top articles on the future of work. You will never be spammed! Future of Work Videos.Henry Mintzberg is a renowned management theorist who developed a list of five basic organizational types.

He identified the various organizations as a result of their blend of strategy. Jul 06,  · This is going to be a five part post that explores various types of organizational structures that either already exist in today's business landscape or are .

Five types of organization structures

Jul 06,  · This is going to be a five part post that explores various types of organizational structures that either already exist in today's business landscape or are starting to emerge as viable options. The 5 Types Of Organizational Structures: Part 2, “Flatter” Organizations. This is part two of a five-part post that explores various types of organizational structures that either already.

The 5 Types Of Organizational Structures: Part 5, Holacratic Organizations. This is the fifth and final part of a five part post that explores various types of organizational structures that.

Henry Mintzberg is a renowned management theorist who developed a list of five basic organizational types. He identified the various organizations as a result of their blend of strategy.

Organizational structure - Wikipedia