Hierarchical StructureA typical org chart where managers report to someone and also have people reporting to them. | Flat StructureA structure where most employees are at the same level. |
Divisional StructureA firm that is divided into divisions by industry or market. Divisions may operate as separate businesses and have their own functional departments. | Departmental StructureA firm or division that is divided into functional departments such as IT and marketing. |
Functional StructureTeams or departments based on job function such as HR or operations. | Matrix StructureDenotes a firm where individuals can report to multiple managers across teams, often on a project basis. |
Team StructureThe practice of assigning a group of people to work together with a single manager who is assigned authority and accountability. The management of teams can be both permanent and project-based. | Geographic StructureManaging teams or departments based on location such as a regional sales office. |
Business UnitsA firm that is structured according to revenue accountability such a team that manages a set of products and services. | Multidisciplinary TeamsThe common situation where teams are formed with members who have different job functions and come from different business units. These teams may have an assigned manager. |
Cross-Functional TeamsAnother word for teams composed of members with diverse job functions, roles and responsibilities. Often project based but these can also be permanent committees or working groups. | Self-Managed TeamsTeams that have no assigned manager such that they self-organize. |
Network StructureIn a network structure, managers are expected to manage internal and external relationships with a variety of stakeholders and contributors to achieve objectives. Reflects the complexity of modern firms that may have less employees and more partners, contractors and freelancers. | Direct ReportThe situation where an employee has one manager who handles important processes such as performance management. |
Indirect ReportThe boss of your boss whereby you fall under the authority of someone who doesn’t manage you directly. |