(i) Entrepreneurial Organisation
An entrepreneurial organisation is managed by its entrepreneurial owner. In this structure, the entrepreneur takes all major decisions without delegating decision-making. This structure is appropriate when the entity is in its early phase, as the business grows, this structure becomes inefficient, and a formal management structure becomes necessary.

(ii) Functional Organisation Structure
In a functional structure, decision-making authority is delegated formally, and responsibilities are divided by function (e.g., production, marketing, finance). Each function has its own management and staff. This structure supports strategies focused on operational efficiency and clear accountability within departments. An organisation chart showing a simple functional structure is shown below.

(iii) Divisional Organisation Structure
As companies grow and expand into new product markets or geographical areas, a divisional structure becomes necessary. Each division is a strategic business unit with its own departments like marketing, operations, and finance. This structure suits strategies that aim for market diversification or product specialization.

(iv) Matrix Organisation Structure
In a matrix structure, functions within the entity work together horizontally, overlaying the traditional vertical authority structure. This dual command system supports strategies that require flexibility and cross-functional collaboration, such as in project-based industries.

In the diagram above, the person indicated is a quality control expert and is
responsible to the quality control manager for technical aspects of the job,
maintaining quality systems and so on.
The person is also responsible to the manager of Project B. That manager will
be concerned with completing the project on time, within the cost budget and
to the proper standard.
Obviously conflicts can arise: the project manager might want to skip some
tests to make up time, but the quality control department will not want to do
that. Both can put the employee under some pressure. However the matrix
structure should allow the employee to ask the two managers to discuss the
problem, as it is plain that they are both involved.

Overall, matrix structures should:

• encourage communication; and
• place emphasis on „getting the job done‟ rather than each manager
  defending his or her own position

(v) Project-based and Team-based Structures
Some organizations create project teams to accomplish specific tasks (e.g., introducing new systems). Project teams draw members from different functions, so a range of skills is available to implement strategic changes. This structure supports strategies focused on innovation and adaptability.