ORGANISATION
INDEX
SL NO TOPIC PAGE NO
1 INTRODUCTION 1
2 TYPES OF ORGANIZATIONAL STRUCTURES 2
3 BUREAUCRATIC ORGANIZATIONAL STRUCTURES 3
4 HORIZONTAL ORGANIZATIONAL STRUCTURES 4
5 NETWORK ORGANIZATIONAL STRUCTURES 5
6 VIRTUAL ORGANIZATIONAL STRUCTURES 6
7 FREE FORM ORGANIZATIONAL STRUCTURES 7
8 CONCLUSION 8
INTRODUCTION
MODERN FORMS OF ORGANIZATIONAL STRUCTURE
• A modern organizational structure does not have a hierarchical, top-down
power arrangement. Also referred to as a contemporary organizational structure,
it removes the departmental boundaries between employees and has them
work on projects together in pursuit of the business's goals.
• Employees working on projects receive requirements and productivity goals
but have the power to determine for themselves the best way to complete the
project. Typically, this structure promotes sharing skills and resources across the
organization to reach its goals.
TYPES OF ORGANIZATIONAL
STRUCTURES
Meaning of organizational structure: An organizational structure is a system that outlines how certain
activities are directed in order to achieve the goals of an organization. These activities can include
rules, roles, and responsibilities. The organizational structure also determines how information flows
between levels within the company.
Traditional Forms-
Line
Line and staff
Functional
Matrix organization structure
Committee (concepts only).
Modern Forms-
Bureaucratic
Horizontal
Network Organizations
Virtual Organizations
BUREAUCRATIC ORGANIZATIONAL STRUCTURE
A bureaucratic organization is a form of management that has a pyramidal command
structure. The bureaucratic organization is very organized with a high degree of
formality in the way it operates. A strict command and control structure is present at
all times. Bureaucracies are meant to be orderly, fair and highly efficient.
Characteristics of Bureaucratic Organisation
Hierarchy: A clear chain of command and well-defined levels of authority, with
power concentrated at the top.
Rules and regulations: Formal rules and policies are clearly stated and applied
uniformly, regardless of status.
Division of labor: Each person has a specific role and routine task.
Recruitment: Employees are hired based on their skills and
knowledge, not favoritism.
Bureaucratic structures are common in large and complex organizations, including
corporations, government agencies, nonprofits, and universities
Example:Bureaucratic structures can help organizations be more efficient and make
fewer errors. For example, an oil company with a bureaucratic structure can use strict
procedures to prevent injuries. If an accident occurs, it's easier to determine whether
HORIZONTAL ORGANIZATIONAL
STRUCTURE
A horizontal organization, often referred to as a flat or decentralized
structure, is characterized by the dispersion of decision-making authority
and responsibilities throughout various levels and departments. A
Horizontal Organization places significant emphasis on fostering
collaboration, teamwork, and the empowerment of employees.
A horizontal organizational structure, also known as a flat structure, has a
few key characteristics, including:
Few management levels: There are fewer levels between upper
management and staff-level employees.
Short chain of command: Managers have a wide span of control over
more subordinates, and the chain of command is usually short.
Quick communication: The short communication pathway results in
faster, more effective communication.
Emphasis on teamwork: Employees are encouraged to work across
different functions and departments.
Example:In a horizontal organization structure, a software company
eliminates middle management, allowing teams of developers to make
decisions collaboratively. Employees have direct access to leaders,
promoting faster communication and innovation.
NETWORK ORGANISATIONAL
STRUCTURE
Network organizations form a group of companies that share
resources via formal and informal relationships to deliver on
individual goals. Network organizations are characterized by
flexible and dynamic structures that rely on strategic alliances,
partnerships, and collaboration with external entities.
Here are some characteristics of a network organization:
Flexibility: Network organizations are designed to adapt quickly
to changing circumstances.
Collaboration: Network organizations encourage collaboration
between teams and external partners.
Open communication: Network organizations encourage open
communication and knowledge sharing.
Small teams: Network organizations are made up of small teams
of individuals with specific skills, knowledge, and experience.
Example:In a network organization structure, a fashion brand
designs in-house but outsources production, marketing, and
logistics to specialized partner companies. The brand coordinates
these external collaborators to create and deliver its products
VIRTUAL ORGANIZATIONAL
STRUCTURE
A virtual organization is an operation where all members of the
company work in different geographic locations while appearing as
a single unit. It uses computers, software, phones and other
technology to work together and converse in real-time, despite any
physical distance.
Here are some characteristics of virtual organizations:
No fixed location: Virtual organizations don't have a physical
location, and employees can work from anywhere in the world.
Decentralized decision-making: Since there's no headquarters,
senior staff across different locations make decisions for the
company.
Dynamic structure: Virtual organizations can quickly adapt to
changing circumstances because their infrastructure is
completely digital.
Technology-centric: Virtual organizations use computers,
software, and phones to enable real-time communication
and collaboration.
Example:An online marketing agency where employees work from
different countries, using Zoom for meetings and Google Drive for file
sharing. They collaborate virtually without a central office, saving on
operational costs.
FREE FORM ORGANIZATIONAL
STRUCTURE
A free form organization structure is a temporary, rapidly changing, and
adaptive system that has no boundaries, hierarchy, or status. It's also
known as an organic or naturalistic organizational structure. According
to Warren G. Bennis, "Free form organization is a rapidly changing,
adaptive, temporary system organized around problems to be solved by
groups of relative strangers with diverse professional skills.“
Some characteristics of a free form organization include:
No boundaries: Free form organizations are status-free and hierarchy-
free.
Rapidly changing: Free form organizations are constantly changing.
Groups of strangers: Free form organizations are made up of groups
of people who are relatively unfamiliar with each other.
Empowerment: Employees are empowered to make decisions and
contribute to innovation.
Example:In a free-form organization structure, a digital marketing
agency operates without a fixed hierarchy, allowing employees to form
teams based on projects and expertise. This flexible arrangement fosters
CONCLUSION