What Are the 4 Types of Organization? Types of Business Organization

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Limited Liability Company (LLC)

Organizations have members working together towards goals.

  • Functional
  • Departmental
  • Matrix

Each has pros and cons.

  • Specialization
  • Chain of Command
  • Authority
  • Delegation
  • Span of Control
  • Centralization vs Decentralization

Structure divides and coordinates activities. It shows jobs and power of each employee.

  • Hierarchical
  • Flat
  • Matrix
  • Team-based

All have advantages and disadvantages. Members have authorities and responsibilities. Coordination creates synergy between members for common goals.

Edgar Schein identified 4 key elements of structure:

  • Common Purpose
  • Coordinated Effort
  • Division of Labor
  • Hierarchy of Authority
  • Purpose
  • Ownership
  • Community
  • Communication
  • Leadership
  • 4 types of structures are functional, divisional, flatarchy, and matrix.
  • 7 key elements of structure are: departmentalization, chain of command, span of control, centralization, work specialization, and formalization.
  • 4 basic elements: output, process, input, and feedback.
  • People
  • Structure
  • Technology
  • Environment

People make the internal social system.

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