Entrepreneurial
An entrepreneurial organisation is managed by its entrepreneurial owner.
The entrepreneur-leader takes all the main management decisions, and he does not delegate decision-making to other people. He is closely involved in the day-to-day operations of the business.
There is no formal management structure. Individuals report directly to the entrepreneur-leader, who tells them what to do.
The entrepreneur-leader therefore dominates the organisation.
The business operations are likely to be simple because it is normally too difficult for a single person to manage a business whose operations are complex. For example, the business might make and sell a small number of products or may provide just one type of service to customers.

Functional
A functional structure is usually the next stage in the development of a business organisation as it grows in size. The organisation is sub-divided into specialist departments, with each department specialising in a particular type of activity (function’).
Within each function, the organisation might be structured as different subfunctions. For example, the manufacturing department might have subdepartments for machining, finishing and assembly. The accounting department might have separate sections for book-keeping, cost accounting, payroll and internal audit.
Each function has its own management structure and its own employees.

Divisional
In a divisional organisation structure, the organisation is divided into a number of different divisions, sometimes called strategic business units or SBUs.
There are two main types of divisional structure:
a product division structure: each division specialises in a different product or service (or range of products or services).
a geographical division structure: each division sells the same products or services, but in different regions or geographical areas.

Matrix
A matrix organisation has been defined as: ‘any organisation that employs a multiple command system that includes not only a multiple command structure but also related support mechanisms and an associated organisational culture and behaviour pattern’.
In a matrix organisation, the traditional ‘vertical’ command structure based on functional departments has an ‘overlay’ of horizontal authority or influence. The project manager is responsible for co-ordinating the activities of the different functions. Horizontal relationships between individuals in different functions are as important as the ‘traditional’ manager-subordinate relationships within functional departments.
The matrix organisation originated in the 1950s and 1960s, in entities where it was recognised that different functions within the entity needed to work closely together. Horizontal relationships across different functions were as important as the ‘traditional’ reporting relationship within functions.

Virtual
The virtual company or virtual organisation does not have an identifiable physical existence, in the sense that it does not have a head office or operational premises. It might not even have any employees.
A virtual organisation is operated by means of:
IT systems and communications networks – normally telephone and e-mail business contacts for outsourcing all operations.
One person, or a small number of individuals, can operate a virtual organisation and indirectly control the actions of many ‘external’ entities and individuals.
A key to a successful virtual organisation is the successful management of all the different external relationships, and successful co-ordination of their activities.

Network
A network organisation is a collection of autonomous units or firms that behave as a single larger entity.
Similar to virtual organisations, IT and communications are important for coordinating activities to maintain the shared brand.
The entities comprising a network organisation are normally legally independent entities, although not always. Some may be wholly owned subsidiaries.
Many of the global accountancy firms including PrimeConsult Partners, Deltacorp Advisors, KeyMetrics Group and Everstone Associates are in fact network organisations. These global organisations are groupings of numerous individual partnerships all sharing the same branding, codes of ethics and working practices.