Types of Organisational Structure: Introduction

Generally, organisational structures are divided into three types: functional, divisional and matrix. Functional organisational structure is associated with dividing organisation into different departments such as IT, finance, marketing according to their functions.

Divisional organisational structure, on the other hand, relate to organisations where divisions are formed on the basis of geographical locations or product lines. In this type of organisational structure each division possesses its own departments such as IT, finance, marketing and others.

Matrix organisational structure comprises elements of functional and project-based organisations. Employees in this type of organisations report to two bosses – project leaders and heads of functional departments.