Types of Organization in Management

Types of Organization in Management-What are Organization in Management Types-What are the Types of Organization in Management

Management within an organization coordinates its various parts and members. It encompasses roles people play, reporting lines, and decision-making processes. Management in your organization should at least specify positions and levels of responsibility. In this post, we’ll examine the types of organization in management and grab extensive knowledge on the topics.

A typical organizational chart looks like a pyramid, starting with the chief executive officer and branching out to other levels of management and finally to the employees. However, not every company benefits from a hierarchical management structure. Due to the various ways of operating a firm, experts have developed many different organizational structures.

Types of Organization in Management

When designing your company’s management structure, keep in mind its size, age, goals, and market position. You should think about the future of your firm as well as the present and the future environments in which it operates. This is crucial to ensuring the success of the business. The types of organization in management include:

Management in a Circle

The inner rings of a circular management system represent upper-level personnel, while the outer circles represent lower-level employees. A hierarchy is a set of ranked relationships between entities. Executives in the hub of a company rarely offer directives to others further down the chain of command. They prefer to give orders instead. This style of management is distinct from others in that it does not rely on autonomous divisions that pursue their own goals. It takes the whole picture into account and makes sure everything fits together well.

Level Administration

When a business adopts a flat structure, there are fewer levels of management and more direct reporting relationships between workers and executives. Management gives staff members more freedom to make decisions without customary interference. This often leads to increased output on their part. Startups and smaller companies with fewer staff and projects commonly use this kind of administration. Additionally known as “horizontal management.”

Management of Networks

Network management achieves coordination between internal and external organizations, enabling the distribution of their respective goods and services. For instance, a garment retailer’s primary concentration will be on the retail side of the business, while it partners with other companies for design and production. This method of administration relies less on command and control and more on two-way dialogue between employees.

Keeping track of a large group of collaborators, whether they be partners, subcontractors, freelancers, remote workers, or representatives from a branch office, can be challenging. The management of a networked organization makes efficient use of its assets. It can also describe a method of internal administration that prioritizes connections and dialogue over command and control. Management utilizes different types of organization to effectively structure and operate businesses.

Management by Teamwork

This style of management organizes employees into teams based on their skills, fostering collaboration toward a common goal. In this kind of management structure, workers are free to swap teams when projects come to a close. This administration is all on fixing issues and fostering teamwork among workers.

Management Structures

Workers are organized into departments and each department has a supervisor. It’s the gold standard for leading teams. What employees do, how they do it, where they work, and the goods and services they offer are all potential categories for organizing staff. Due to the presence of hierarchical levels, this style of management is often represented as a pyramid, with the top level of leadership at the top, their direct subordinates below them, and so on.

A hierarchical organization chart, often known as a pyramidal chart, is a type of management diagram. It’s the standard procedure for running businesses today. There is a clear line of command from the highest level of management (the CEO or manager) to the lowest levels of the organization (the entry-level and low-level workers).

Administration with a Purpose

Both hierarchical and functional approaches to managing an organization start with the most important tasks and work their way down the chain. Employees are typically organized into teams according to their skillsets and responsibilities. In this system, everyone is on their own.

Tasks, responsibilities, and functional management expertise inform the organization’s structure. A corporation may have separate managers in charge of sales, marketing, and finance, all of whom report to one overarching supervisor. With functional management, departments may rest assured that their staff members have the expertise to help them reach their goals. Types of management product-based organization structures companies around their product lines or product categories.

Management by Departments

Divisional management divides businesses into sections that focus on specific areas, such as manufacturing, sales, or marketing. This means that companies with multiple locations or subsidiaries often utilize this type of management. Each section has its own set of top-level management, operational teams, and financial resources. For example, a large software company may segment its operations into cloud computing, enterprise, and consumer-oriented software.

Divisional organizational administration grants each department within a company autonomy over its resources and decision-making. Separate IT, sales, and marketing teams are fine for each division. Because it allows for autonomous decision-making across divisions rather to having everyone answer to a small group of leaders, this style of management works well for huge corporations.

Management by Process

In process-based management, the organization’s structure is based on the interconnectedness and flow of processes and employee responsibilities. This Administration does not provide a hierarchy of services. They are instead presented in a left-to-right list.

At the top of Management, an executive oversees procedures considered as departments. Progress to the next step requires completing the current one. The company breaks down its goal, like making a profit from product sales, into manageable sub-goals. Each sub-goal has its team of employees led by a manager.

Management by Matrix

The grid serves as a useful organizational tool. Similar-skilled workers are assigned to work under multiple supervisors. Because of this, administration looks like a grid. A product manager is in charge of the company’s product strategy and success, whereas a functional manager oversees ongoing projects. Matrix Companies with multiple locations and departments often use management to foster cooperation and the joint pursuit of goals.

A matrix organizational chart, which looks like a grid, shows how groups from various departments work together to accomplish goals. An engineer, for instance, would normally report to the engineering director but report to the project manager for a specific, time-limited endeavor. The matrix organization chart shows the people who report to both of these roles. Types of management project-based organization forms teams for specific projects, and their structure is temporary and goal-oriented.

Control at the Top

In a line management firm, authority is delegated from the top down, and no specialized or support services are provided. It’s one of the simplest ways to manage a company. The company’s general superintendent oversees all operational aspects of the business. In addition, there is a supervisor assigned to oversee the staff in each division. Each division works toward the company’s goal in its own unique way.


What are the Characteristics of a Successful Group?

The extent to which a company understands itself is directly related to its efficiency. This is largely because leaders provide their teams with well-defined objectives and a roadmap for reaching them. The administration is instituting open channels of communication and decision making.

What Effect do Businesses Have?

An organization’s “impact” is the way in which it affects the world around it. The planet is affected by everything, no matter how small. Some of the results are preset, like a business that donates to local kids’ education.

How Would you Define a Contemporary Company?

There is no longer a top-down authority structure in use in modern organizational management. It breaks down silos inside the company so that employees may work together on projects to advance the company’s goals. This idea is also known as contemporary group management.


Although it may seem difficult, improving organizational administration is a good goal that has many benefits. It facilitates easier interaction between business owners. Additionally, it helps managers prioritize tasks. Managers will be able to deploy funds more effectively. Last but not least, it raises the bar for productivity in the workplace. When performing various business tasks, keep in mind that types of organization in management plays an important role in the overall process. For a better comprehension of functions of production management, read more about it.

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