Each hierarchical level represents a piece of the puzzle or structure of the organization that the company needs to operate effectively and efficiently. Types of Organizational Structure. ). In a Matrix organizational structure, the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. Org charts have a variety of uses, and can be structured in many different ways. For example, an engineer may regularly belong to the engineering department (led by an engineering director) but work on a temporary project (led by a project manager). This is a functional organizational structure. The Key Differences Between an Organizational Structure and an Org Chart An organizational structure and an org chart can often appear similar on the surface, but there are some profound distinctions: the chain of command may include a CEO, followed by functional managers for the sales, marketing and production department, followed by their subordinates. For example Corporations, Governments, and organized religions are hierarchical organizations with different levels of management, power or authority.. 2) Matrix Structure. Since not all organizations operate in the same way, there are different types of organizational chart structures, including functional, matrix, divisional and flatarchy. Functional Structure: . 1. For example, one department is responsible for companywide marketing and another one is responsible for all human resources. Each different functions (e.g., HR, finance, marketing) is managed from the top down via functional heads (the CFO, the CIO, various VPs, etc. This is the simplest & the most prevalent form of organizational structure. The definition of an organization chart or "org chart" is a diagram that displays a reporting or relationship hierarchy. Under this structure, employees are grouped into the same departments based ⦠The functional org chart is a very common organizational structure that many companies follow, which is supposed to divide people into several departments according to peoplesâ specialties and function they perform in the company. The hierarchy of the company is laid out within the organizational chart. The UI department supports the firmâs projects and doesnât otherwise carry out much work on its own. 2. A functional organizational chart helps employees understand their roles within a company. A matrix organizational chart looks like a grid, and it shows cross-functional teams that form for special projects. It vertically structures each department with roles from the president to finance and sales departments, to customer service, to employees assigned to one product or service. Functional Org Chart Baic Concept. There are four general types of organizational structure that are widely used by businesses all around the world: 1. Functional Structure . Functional Structure. A functional organizational structure is a structure used to organize workers. They are grouped based on their specific skills and knowledge. Functional Structure. An organizational chart or org chart is a visual representation of this internal system and structure that makes company operations and roles easier to understand. This is the dominant mode of organization among large organizations. The functional organization structure solves the duplication of effort in divisions by splitting the company into departments based on functionality. This is a project-oriented organizational structure. A web design firm has a user interface design department, which is available for project work when necessary. Divisional Structure. 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