Types of Organisational Structure

All managers must bear that there are two organisations they must deal with-one formal and the other informal.

1. Formal organisation:
   The formal organisation in usually delineated by an organisational chart and job descriptions. The official reporting relationships are clearly known to every manager.
   Alongside the formal organisation exists are informal organisation which is a set of evolving relationships and patterns of human interaction within an organisation that are not officially prescribed.
   Formal organisational structures are categorised as:
   1. Line organisational structure.
   2. Staff or functional authority organisational structure.
   3. Line and staff organisational structure
   4. Committee organisational structure.
   5. Divisional organisational structure.
   6. Project organisational structure.
   7. Matrix organisational structure and
   8. Hybrid organisational structure.
2. Informal Organisation:
   An informal organisation is the set of evolving relationships and patterns of human interaction within an organisation which are not officially presented. Alongside the formal organisation, an informal organisation structure exists which consists of informal relationships created not by officially designated managers but by organisational members at every level. Since managers cannot avoid these informal relationships, they must be trained to cope with it
   The informal organisation has the following characteristics
   1. Its members are joined together to satisfy their personal needs (needs for affiliation, friendship etc.)
   2. It is continuously changing: The informal organisation is dynamic.
   3. It involves members from various organisational levels.
   4. It is affected by relationship outside the firm.
   5. It has a pecking order: certain people are assigned greater importance than others by the informal group.
   Even though an informal organisational structure does not have its own formal organisational chart, it has its own chain of command.