The meaning of organizational structure is fairly simple: it concerns the way tasks within an organization are divided and relate to one another and what the authority and accountability relationships look like. Yet the reality is somewhat more complex than this brief explanation. There are, after all, many different organizational structures to choose from. And on top of that, an organization almost never uses just a single model. Much more often you see elements of multiple models reflected in an organizational structure.
To give you a bit more insight into the possibilities available, you'll find below a brief explanation of seven different organizational structures. Use these examples for inspiration and ultimately decide for yourself which structure, or which combination of structures, best suits your company.
To describe the different organizational structures, we use Mintzberg's models. Henry Mintzberg is one of the foremost specialists in the field of organizational sociology. He has many books to his name, including The Structuring of Organizations. In it he describes seven different organizational structures or types of organizations:
This organizational structure is very flat and consists of a single top that directs employees. You often see this model in small, start-up organizations. The short lines make the organization very agile and flexible. A disadvantage is that a lot of responsibility rests on the shoulders of one or a few managers. If these fail, this has major consequences. Therefore this structure is usually more sustainable in larger organizations.
In the machine organization everything revolves around rules, protocols and standardization of work processes. There is a large middle management and generally little room for employees' own initiative. In manufacturing companies or large companies that work with legislation, such as government agencies, this organizational structure often works very well. One disadvantage is that departments often work separately from each other, which can lead to an 'island culture'.
In an organization with a professional structure, professionals work with specialized expertise. They have a lot of autonomy and there is little top-down control. The disadvantage of this is that everyone does "their own thing" very well, but it is difficult to determine a clear strategic course and to execute it.
An organization with a divisional structure consists of a single headquarters with multiple divisions beneath it. These are organized on the basis of, for example, market diversity, products, or geographic location. Decision-making authority rests within the divisions themselves, allowing them to determine their own course. The danger of this organizational structure lies in potential disagreements over the strategic direction, which can lead to conflicting interests.
Unlike the models mentioned above, an innovative organization has little structure. By standardizing nothing, everything is possible and the organization is completely open to innovation. Work is done on a project basis and decision-making authority lies where it is needed at that moment. This organizational structure often uses a matrix that includes the various functional departments and the ongoing projects. For that reason it is also referred to as a matrix organizational structure. The advantage of this way of working is that it allows quick adaptation and gives employees the space to deploy their talents effectively, even outside their own role. A disadvantage can be a lack of control and overview.
In this organizational structure the ideology, or rather the mission, of the organization is central. Employees work entirely in service of this (internal) mission. A good example of a company with this organizational structure is Apple.
The last structure described by Mintzberg is the political organization. Actually this is not a structure and this model has no real advantages. It is mainly about power relations and it is by no means always clear who is responsible for what. You often see this in the parliamentary groups of political parties, hence the name political organization.
