Functional structure

Under this structure, the organization groups employees according

to a specialized or similar set of roles or tasks. While functional
structures operate well in stable environments where business
strategies are less inclined to changes or dynamism, the level of
bureaucracy makes it difficult for organizations to respond to
changes in the market quickly.

Divisional structure
A divisional organizational structure usually consists of several
parallel teams focusing on a single product or service line. Examples
of a product line are the various car brands under General Motors or
Microsoft's software platforms. One example of a service line is Bank
of America's retail, commercial, investing and asset management
arms.
Unlike departments, divisions are more autonomous, each with its
own top executive--often a vice president--and typically manage their
own hiring, budgeting and advertising. Though small businesses
rarely use a divisional structure, it can work for such firms as
advertising agencies which have dedicated staff and budgets that
focus on major clients or industries.

A divisional organizational structure usually consists of several parallel teams focusing on a

single product or service line. Examples of a product line are the various car brands under
General Motors or Microsoft's software platforms. One example of a service line is Bank of
America's retail, commercial, investing and asset management arms.
Unlike departments, divisions are more autonomous, each with its own top executive--often a
vice president--and typically manage their own hiring, budgeting and advertising. Though
small businesses rarely use a divisional structure, it can work for such firms as advertising
agencies which have dedicated staff and budgets that focus on major clients or industries.

Matrix structure
The matrix structure groups employees by both function and product. This structure can
combine the best of both separate structures. A matrix organization frequently uses teams of
employees to accomplish work, in order to take advantage of the strengths, as well as make
up for the weaknesses, of functional and decentralized forms. An example would be a
company that produces two products, "product a" and "product b". Using the matrix structure,
this company would organize functions within the company as follows: "product a" sales
department, "product a" customer service department, "product a" accounting, "product b"
sales department, "product b" customer service department, "product b" accounting
department. Matrix structure is amongst the purest of organizational structures, a simple
lattice emulating order and regularity demonstrated in nature.

Team structure

One of the newest organizational structures developed in the 20th century is team and the
related concept of team development or team building. In small businesses, the team structure
can define the entire organization. Teams can be both horizontal and vertical.[17] While an
organization is constituted as a set of people who synergize individual competencies to
achieve newer dimensions, the quality of organizational structure revolves around the
competencies of teams in totality.[18] For example, every one of the Whole Foods Market
stores, the largest natural-foods grocer in the US developing a focused strategy, is an
autonomous profit centre composed of an average of 10 self-managed teams, while team
leaders in each store and each region are also a team. Larger bureaucratic organizations can
benefit from the flexibility of teams as well. Xerox, Motorola, and DaimlerChrysler are all
among the companies that actively use teams to perform tasks.