The functional organization structure solves the duplication of effort in divisions by splitting the company into departments based on functionality. Each hierarchical level represents a piece of the puzzle or structure of the organization that the company needs to operate effectively and efficiently. The definition of an organization chart or "org chart" is a diagram that displays a reporting or relationship hierarchy. There are four general types of organizational structure that are widely used by businesses all around the world: 1. In a Functional Organizational Structure the organization is managed according to delegation of command to different functional areas; e.g. Since not all organizations operate in the same way, there are different types of organizational chart structures, including functional, matrix, divisional and flatarchy. This is the dominant mode of organization among large organizations. Functional Structure: . Functional Org Chart Baic Concept. Org charts have a variety of uses, and can be structured in many different ways. Functional structure at FedEx: This organizational chart shows a broad functional structure at FedEx. A functional organizational chart helps employees understand their roles within a company. Divisional Structure. For example Corporations, Governments, and organized religions are hierarchical organizations with different levels of management, power or authority.. 2) Matrix Structure. Under this structure, employees are grouped into the same departments based … The hierarchy of the company is laid out within the organizational chart. They are grouped based on their specific skills and knowledge. Functional Structure. This is a functional organizational structure. the chain of command may include a CEO, followed by functional managers for the sales, marketing and production department, followed by their subordinates. A functional organizational structure is a structure used to organize workers. 2. ). An organizational chart or org chart is a visual representation of this internal system and structure that makes company operations and roles easier to understand. Functional Structure. The UI department supports the firm’s projects and doesn’t otherwise carry out much work on its own. Functional Structure . A web design firm has a user interface design department, which is available for project work when necessary. In a Matrix organizational structure, the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. This is the simplest & the most prevalent form of organizational structure. The functional org chart is a very common organizational structure that many companies follow, which is supposed to divide people into several departments according to peoples’ specialties and function they perform in the company. The most frequent application of an org chart is to show the structure of a business, government, or other organization. For example, an engineer may regularly belong to the engineering department (led by an engineering director) but work on a temporary project (led by a project manager). Functional organisational structure refers to the structure in which different departments are created on the basis of major functions performed in the organisation. Types of Organizational Structure. The Key Differences Between an Organizational Structure and an Org Chart An organizational structure and an org chart can often appear similar on the surface, but there are some profound distinctions: It vertically structures each department with roles from the president to finance and sales departments, to customer service, to employees assigned to one product or service. A matrix organizational chart looks like a grid, and it shows cross-functional teams that form for special projects. 1. This is a project-oriented organizational structure. 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