#Organizational chart modern design professional#

Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. From a broad perspective, it appears very similar to the product-based structure above.

#Organizational chart modern design professional#

The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. It also has the potential for a lack of cross-department communication and collaboration.Īlong with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, this structure runs the risk of being too confining and it can impede employee growth. It also establishes clear expectations and has a well-defined chain of command. A functional structure facilitates specialization, scalability and accountability. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority.

Departments or teams within the organizationĪ functional-or role-based-structure is one of the most common organizational structures.

Regardless of the special type of organizational structure you choose, it should have the following components: Clearly disseminating this information to employees:Įssential Elements of Clear Organizational Structure There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Benefits of Creating an Organizational Structure

The matrix organizational structure described below is an example of a flat structure. With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures. FlatĪ vertical organizational chart has a clear chain of command with a small group of leaders at the top-or in the center, in the case of a circular structure-and each subsequent tier has less authority and responsibility. Instead of information flowing down to the next “level,” information flows out to the next ring of management. On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority. CircularĪ hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. Decentralized leadership can help companies remain agile and adapt to changing needs. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.Ĭonversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Many companies use the traditional model of a centralized organizational structure. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical. An organizational structure creates this framework. Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company.