Lesson 1: Managerial Organization

Organizational Structures

What I Need to Know


There are several types of managerial organization which are determined by the size and nature of the business. Each type defines a formal chain of command and helps the business achieve its objectives. Sometimes businesses may find that they have a combination of the different types of organization.

Six common organizational structures will be explored in this section. Click the following for the definition.

  1. Line Organization
  2. Functional Organization
  3. Line and Staff Organization
  4. Geographical Organization
  5. Matrix Organization
  6. Committee Organization

Each can be represented in an organizational chart.

Organizational charts are visual representations of a business and its organizational structure. Charts can be structured in various formats, but they should always be organized to indicate the flow of communication within the business. Top management is often shown at the top of the chart.