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Types of Organizational Charts (OrganizationalStructure Types) for Different ScenariosUpdated on: 19 September 2018

In one of our previous articles, we discussed organizational chart best practices(https://creately.com/blog/diagrams/organizational-chart-best-practices/). Now let’s take a look attypes of organizational charts structures which can be used in different scenarios. And you don’t haveto worry about creating them too. Our organizational chart software (https://creately.com/Draw-Organizational-Charts-Online?utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialposts) supports all the typesmentioned below.

Organizational Structure Types

1) Hierarchical StructureThe hierarchical model is the most popular organizational chart type. There are a few models that arederived from this model.

In a hierarchical organization structure, employees are grouped with every employee having one clearsupervisor. The grouping is done based on a few factors, hence many models derived from this. Beloware few of those factors

Function – employees are grouped according to the function they provide. The below imageshows a functional org chart with �nance, technical, HR and admin groups.

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Geography – employees are grouped based on their region. For example in USA employees mightbe grouped according to the state. If it’s a global company the grouping could be done accordingto countries.Product – If a company is producing multiple products or offering different services it can begrouped according to the product or service.

These are some of the most common factors, but there are many more factors. You can �nd org chartexamples (https://creately.com/diagram-community/examples/t/organization-chart?utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialposts) for most of these typesin our diagramming community.

(http://creately.com/creately-start?tempID=gsy3ayzi7&utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialpost

A functional organizational structure chart, a variation of the hierarchical model(https://creately.com/diagram/example/gsy3ayzi7/Org+Chart+Template+for+Company+or+Organization?

utm_source=orgcharttypes&utm_medium=blog&utm_campaign=diagusage)

This is the dominant mode of organization among large organizations. For exampleCorporations, Governments, and organized religions are hierarchical organizations with different levelsof management, power or authority. 

2) Matrix StructureIn a Matrix organizational structure, the reporting relationships are set up as a grid, or matrix, ratherthan in the traditional hierarchy. It is a type of organizational management in which people with similarskills are pooled for work assignments, resulting in more than one manager to report to (sometimes

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referred to as solid line and dotted line reports, in reference to traditional business organizationcharts).

For example, all engineers may be in one engineering department and report to an engineeringmanager. But these same engineers may be assigned to different projects and might be reporting tothose project managers as well. Therefore some engineers might have to work with multiple managersin their job role.

(http://creately.com/creately-start?tempID=g5701q2i3&utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutoria

Matrix organizational structure chart drawn with Creately(https://creately.com/diagram/example/g5701q2i3/Matrix+Structure?

utm_source=orgcharttypes&utm_medium=blog&utm_campaign=diagusage)

3) Horizontal/Flat StructureThis is an organizational chart type mostly adopted by small companies and start-ups in their earlystage. It’s almost impossible to use this model for larger companies with many projects andemployees.

The most important thing about this structure is that many levels of middle management areeliminated. This enables employees to make decisions quickly and independently. Thus a well-trainedworkforce can be more productive by directly getting involved in the decision-making process.

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This works well for small companies because work and effort in a small company are relativelytransparent. This does not mean that employees don’t have superiors and people to report. Just thatdecision making power is shared and employees are held accountable for their decisions.

(http://creately.com/creately-start?tempID=idzbfne41&utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialposts)Flat organizational structure chart drawn with Creately (https://creately.com/diagram/example/idzbfne41/Flat+Organization+Chart+Template?

utm_source=orgcharttypes&utm_medium=blog&utm_campaign=diagusage)

So in summary, when deciding on the suitable organizational chart, it is important to have anunderstanding of the current organizational structure of your company.

4) Network StructureNetwork organizational structure helps visualize both internal and external relationships betweenmanagers and top level management. They are not only less hierarchical but are also moredecentralized and more �exible than other structures.

The idea behind the network structure is based on social networks. Its structure relies on opencommunication and reliable partners; both internal and external. The network structure is viewed asagiler than other structures because it has few tires, more control and bottom �ow of decision making.

Using a Network organizational structure is sometimes a disadvantage because of its complexity. Thebelow example of network org chart shows the rapid communication between entities.

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(http://creately.com/creately-start?tempID=jgq69t2z1&utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialposts)Network organizational structure chart drawn with Creately (https://creately.com/diagram/example/jgq69t2z1/Network+Organizational+Chart?

utm_source=orgcharttypes&utm_medium=blog&utm_campaign=diagusage)

5) Divisional StructureWithin a divisional structure, each organizational function has its own division which corresponds toeither products or geographies. Each division contains the necessary resources and functions neededto support the product line and geography.

Another form of divisional org chart structure is the multi-divisional structure. It’s also known as M-form. It’s a legit structure in which one parent company owns several subsidiary companies, each ofwhich uses the parent company’s brand and name.

The main advantage of the divisional structure is the independent operational �ow, that failure of onecompany does not threaten the existence of the others.

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It’s not perfect either. There can be operational ine�ciencies from separating specialized functions.Increase in accounting taxes can be seen as another disadvantage.

(http://creately.com/creately-start?tempID=je2znfof1&utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialposts)

Divisional organizational structure chart drawn with Creately(https://creately.com/diagram/example/je2znfof1/Divisional+Organizational+Structure?

utm_source=orgcharttypes&utm_medium=blog&utm_campaign=diagusage)

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6) Line Organizational StructureLine organizational structure is one of the simplest types of organizational structures. Its authority�ows from top to bottom.  Unlike other structures, specialized and supportive services do not takeplace in these organizations.

The chain of command and each department head has control over their departments. The self-contained department structure can be seen as its main characteristic. Independent decisions can betaken by line o�cers because of its uni�ed structure.

The main advantage of a line organizational structure can be identi�ed as the effective communicationthat brings stability to the organization.

(http://creately.com/creately-start?tempID=jdvjcwab1&utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialposts)

Line organizational structure chart drawn with Creately (https://creately.com/diagram/example/jdvjcwab1/Line+Organizational+Structure?utm_source=orgcharttypes&utm_medium=blog&utm_campaign=diagusage)

7) Team-based Organizational Structure

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Team-based organizational structures are made of teams working towards a common goal whileworking on their individual tasks. They are less hierarchical and they have �exible structures thatreinforce problem-solving, decision-making and teamwork.

Team organization structures have changed the way many industries work. Globalization has allowedpeople in all industries around the world to produce goods and services cooperatively. Especially,manufacturing companies must work together with the suppliers around the globe while keeping thecost to a minimum while producing high-quality products.

(http://creately.com/creately-start?

2/20/2019 Types of Organizational Charts | Organization Structure Types for Companies

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tempID=gsy6xadx1&utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialposts)Team based organizational structure chart drawn with Creately (https://creately.com/diagram/example/gsy6xadx1/Team+Based+Structure?

utm_source=orgcharttypes&utm_medium=blog&utm_campaign=diagusage)

Other Types of Organizational ChartsThe ones shown above are the most commonly used org chart structure types or organogramstructure types as some call them. But there are plenty more models which have various advantagesand disadvantages based on the situation and organization. You can easily experiment with differentmodels using our org chart software (https://creately.com/Draw-Organizational-Charts-Online?utm_source=orgcharttypes&utm_medium=blog&utm_campaign=tutorialposts).

In a future article, we’re hoping to talk about the advantages and disadvantages of using organizationalcharts. Stay tuned for that article and hope you enjoyed this one.

Have questions? Feel free to ask them in the comments or you can reach to us via our social mediachannels.

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Nishadha

Software engineer turned tech evangelist. I handle marketing stuff here at Creately includingwriting blog posts and handling social media accounts. In my spare time I love to read and travel.Check out my personal blog Rumbling Lankan (http://rumblinglankan.com) where I write aboutonline marketing stuff.

View all posts by Nishadha → (https://creately.com/blog/author/nish/)

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Comments

faith

limitations of organisation charts

25.07.2016 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-49019) - reply

Nasiri

Hi which type of the mentioned organization charts is useful for an eCommerce business?

25.03.2016 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-47898) - reply

PetroEng Student

eCommerce are typically smaller operations as opposed to ‘brick and mortar’ businesses, sothey will be more likely to have Horizontal/Flat organisational structure

(https://creately.com/blog/diagrams/advantages-disadvantages-organizational-charts/)

Advantages and Disadvantages of Organizational Charts Structures(https://creately.com/blog/diagrams/advantages-disadvantages-organizational-charts/)

(https://creately.com/blog/diagrams/organizational-chart-best-practices/)

Organizational Chart Best Practices for Meaningful Org Charts(https://creately.com/blog/diagrams/organizational-chart-best-practices/)

(https://creately.com/blog/diagrams/manage-your-companys-growth-org-charts/)

How to Manage Your Company’s Growth with Org Charts (https://creately.com/blog/diagrams/manage-your-companys-growth-org-charts/)

2/20/2019 Types of Organizational Charts | Organization Structure Types for Companies

https://creately.com/blog/diagrams/types-of-organizational-charts/ 11/13

01.09.2016 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-49317) - reply

Iftikhar Ahmed

Im doing MBA in HR. Can someone share the organizational structure of HR department of a large ITCompany.

Thanks

02.02.2016 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-47495) - reply

debasish

the organizational structure of an IT company is basically Flat!

17.10.2016 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-49667) - reply

Claire Greenhow

Back in the day (yep, I am showing my age) I used to dread creating organisational charts. With thetechnology available now, it’s so much easier to create even the most complex of charts, no matterwhich of the above options best suits your business.

27.10.2015 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-46774) - reply

Tom Salem

Is there a post on the advantages and disadvantages of using the above mentioned organizationalcharts ? Please direct me to it, THanks.

28.09.2015 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-46547) - reply

Amanda

You can check advantages and disadvantages of org charts herehttps://creately.com/blog/diagrams/advantages-disadvantages-organizational-charts/(https://creately.com/blog/diagrams/advantages-disadvantages-organizational-charts/)

15.11.2016 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-49987) - reply

shafat

your chart is very helpfull for students,and your article with helping material for every professionalperson.

06.08.2015 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-46136) - reply

rhoda

2/20/2019 Types of Organizational Charts | Organization Structure Types for Companies

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Submit

What factors determine the type of organization chart to use???

02.06.2015 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-45619) - reply

Preet

Hi

Iam doing distance MBA from NMIMS

I have to solve an assignment where the question is:

Study organization structure of two IT companies and prepare a report comprising of the type of chart, positions, levels, functions, process and qualities in the organization.

Can you please help me about the type of content that should be covered in this?

13.04.2015 (https://creately.com/blog/diagrams/types-of-organizational-charts/#comment-45178) - reply

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