Advantages . The organizational structure determines how the organization performs or operates. Types of Organizational Structures: Hierarchical Structure. This arrangement is a form of a hierarchy.In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. Netflix Inc.’s organizational structure is hierarchical but with modifications that account for business flexibility and responsiveness to global market changes. The functional hierarchy feature of Starbucks Coffee’s organizational structure refers to grouping based on business function. The most common application of this structure can be found in mid-size businesses that achieve top performance in the production of a small number of products that require a high level of specialization. The hierarchical structure is linear in nature as authority, information, and tasks flow from the top down. For the division of work into various departments. Functional organizational structure, also referred to as centralised structure is one of several reporting structures a company could implement. These departments are most pronounced at the top levels of Starbucks’s corporate structure, such as at the corporate headquarters. Editable matrix org chart template to quickly visualize your cross functional teams. It is usually defined using a hierarchy chart that shows how groups or functions report within the organization. It is the most widely used structure because it is the simplest and least expensive of the seven alternatives. The functional organizational structure develops specialists rather than generalists. Many exporting options to add to PowerPoint or your company website. The term organizational structure refers to how the people in an organization are grouped and to whom they report. For Project Managers, a company's organizational structure type will affect how resources are allocated to the project and will be a factor in how much influence the Project Manager will have within the organization. Tagged: org,chart,tree,structure,hierarchy,org chart templates,org chart examples,organizational cahrt,org chart,matrix org chart,matrix. The traditional hierarchical structure may not work for every business. Generally, the functional manager has more authority than the project manager. From there, the structure may shift to an advisory board or staff director, who oversees various department directors. Organizational structures define the hierarchy or an organization, and determine the way information flows within it.When establishing a structure, business leaders should decide how a structure best aligns with the company’s principles and goals and how it outlines and sets up tasks for each employee. The greater the responsibility, the higher the level. A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. A team is a group of employees—ideally with complementary skills and synergistic efforts—working toward a common goal. On the whole, This type of organization has been quite successfully followed in an enterprise like banks, insurance companies. Pros. A functional manger in this kind of organization has complete authority. A functional, top-down organizational chart reflects a traditional business structure. Organizational Structure Types. There are four main kinds of organizational structure, and each one has its pros and cons. You always start looking for a new project. Hierarchical organizational structure puts the authority and responsibility on the top side of the company and makes them flow down from the top to the lowest level gradually. 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