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1. Functional Organization Structure – A functional organizational structure, also called a bureaucratic organizational structure, divides the company based on specialty. In a functional organization structure, the organization is grouped into various departments where people with similar skills are kept together in forms of groups; e.g. sales department, marketing department, finance department, etc. This helps organizations enhance the efficiencies of each functional group.

2. Divisional Organization Structure – Divisional Structure is common in environments where projects, products or product lines are governed independently of each other. In a divisional structure, an organization is divided into various divisions where people with diverse skills are kept together in the form of groups by a similar product, service or geographic location, and each division itself is capable of doing the task on its own. Each division has its own resources required to function properly. The division can be based on product, service or the geographical area: e.g. Dell USA, Dell India, etc.

3. Matrix Organization Structure – The matrix organizational structure combines the functional and additional organizational structure types. There are project teams, bringing skilled individuals together from across the organization, but there are still divisions. Matrix organization structure is a hybrid of the functional organization structure and the project organization structure. In a matrix organization structure, you can see two command structures: vertical and horizontal. Here, an employee may be part of a functional group but he may also work on a project. This structure takes the benefits of both worlds.