Organization structure examples

There are many ways to structure your organization. These are the primary considerations when you set up your organization structure:

  • Number of lines of business
  • Reporting requirements
  • Amount of process or code sharing between organization units

These examples illustrate some common organization structures.

Centralized example

Organization units are created for the major functions of the company, such as operations, human resources, and finance. These units are unique and centrally coordinated. Each unit is the only unit fulfilling each specific function.

Decentralized example

The organization is divided into business units that each have their own functional operations. For example, Business Unit 1 has its own HR and Finance units, and Business Unit 2 also has its own HR and Finance units.

Hybrid example

The organization keeps some functions centralized but duplicates other functions across multiple business units. Typically, the organization relies on Shared Services for internal functions such as HR, while placing customer-facing and entrepreneurial functions in business units.