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What are the diffent types of Organizational Charting?

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A well-designed organizational chart defines jobs based on lines of business. Clear individual accountability for lines of business is fundamental. It allows people to run internal businesses creatively, with a focus on satisfying their customers and adding value. It gives people well-focused jobs and it defines those jobs based on results, not skills or processes. The following is a brief description of the most common types of organizational design. Organizational charts are then created to illustrate the specific layout of the organization and/or its objectives.

Functional: Authority is determined by the interaction between group roles and activities. Functional structures assemble similar or related business specialties or processes together under the well-known headings of finance, manufacturing, marketing, accounts receivable, research, etc. Economy is attained through specialization. However, the organization risks losing sight of its overall interests as different departments pursue their own goals.
Divisional: Corporate divisions operate as essentially independent businesses under the larger corporate umbrella. In a multinational organization, divisions may be unrelated. Divisional structures are made up of self-contained, decisive business units where each produces a single product. A central office, focusing on results, organizes and controls the activities, and provides support services between divisions. Functional departments accomplish division goals. A weakness however, is the tendency to duplicate activities among divisions.
Matrix: Teams are formed and team members report to two or more managers. Matrix structures utilize functional and divisional chains of command simultaneously in the same part of the organization, commonly for unique projects. It is used to develop a new product, to ensure the continuing success of a product which several departments directly contribute, and to solve a difficult problem. By superimposing a project structure upon the functional structure, a matrix organization is formed that allows the organization to take advantage of new opportunities. This structure appoints experts from different functional departments to work on one or more projects led by project managers. Matrix organizations are particularly appealing to firms that want to speed up the decision-making process. Using multiple managers for one employee may result in confusion as to manager evaluation and accountability. Thus, the matrix system may elevate the conflict between product and functional interests.

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