These org charts can be either mechanistic-i.e., highly centralized, specialized, and formalized bureaucratic structures with narrow, rigid parameters for control, roles, and authority-or organic-i.e., decentralized, loosely departmentalized structures with minimal specialization and an emphasis on performance and capabilities rather than prescribed roles and functions.Īs a rule, mechanistic org charts work well for policy-driven, high-accountability purposes, but can hamper creativity with their strict controls and rigidity. How those business activities should be performed to achieve both specific and broad goals for the organization’s short- and long-term success.Who it relies on to perform the tasks that make up its business activities, how their roles relate to one another, and who is responsible for specific components of each business activity.What are the Common Types of Organizational Structure?Įvery organizational structure is, at its heart, a diagram describing: This is also true of businesses, which have different sizes and types of organizational structure, but share a need for transparent and effective policies and hierarchies in order to reach their goals.īy understanding how common types of organizational structures are implemented, how they support the organizations using them, and the challenges and advantages they bring, you can decide which is right for your business and begin working toward meeting your goals for greater efficiency, competitive strength, profitability, and more. Ships have different classes to meet different needs-shipping barges, transport vessels, etc.-but they share the need for a clear chain of command and detailed, enforced policies to ensure the vessel is operating at peak safety and efficiency. Organizations, like ships at sea, need a clear design, hierarchy, and well-defined processes to navigate sometimes challenging waters and reach their destinations safely.

Small company org chart