In a functional structure, organizations are divided into specialized groups with specific roles and duties. A functional structure is also known as a bureaucratic organizational structure and is commonly found in small to medium-sized businesses. Most people in the workforce have experience working in this type of organizational structure.

type of team structure

In certain instances, you may need to outsource part of the project work to external vendors. The project manager is responsible for ensuring external vendors deliver as expected. Recent studies indicate collaboration can demotivate top-performers as they feel they are carrying the team and often have to settle for ‘mediocre’ work.

You could be in a workplace team, a sports team or maybe you’re just getting started in management and want to understand the different types of teams. Whatever reason you’re here, we’re glad you snuck over to this side of the internet. Options include training facilitation and effective work team infrastructure design. I want to provide you with tools to help you measure and improve work team effectiveness.

Whether you’re working from a physical or a virtual office, the team structure you choose will have a massive impact on how your employees collaborate and work to take your firm to new heights. Successful organizational structures define each employee’s job and how it fits within the overall system. Team organization structures have changed the way many industries work. Globalization has allowed people in all industries around the world to produce goods and services cooperatively. Especially, manufacturing companies must work together with suppliers around the globe while keeping the cost to a minimum while producing high-quality products. After weighing these factors, you’ll likely know which organizational structure is best for you – and if you get it wrong, you can always switch to another organizational structure.


It also governs the flow of information through levels of the company and outlines the reporting relationship among midlevel staff, senior management, executives and owners. It is effectively a hierarchy for a company, though some organizational structures emphasize a near-total lack of hierarchy. Most examples of organizational structure have a top-down hierarchy. Alternatively, this type of structure follows an outward flow and contributes to information flowing freely across the business.

This leads to problems communicating and handing off work to other teams and employees. It can be difficult to scale under a product-based divisional structure, and the organization could end up with duplicate resources as different divisions strive to develop new offerings. Again, once you implement an organizational structure, it’s never too late to make adjustments. Alongside performance checks, survey your employees to learn how they feel about a new structure. It can be that their input will help you fine-tune the organizational design without extra cost and effort. In a flat organizational structure, there are few middle managers between employees and top managers.

Employee retention and engagement are a challenge for many organizations, which in turn, affects project delivery. Unexpected absences or departures from the team can quickly derail any project plan. Regular meetings, reports, documentation, and a collaborative project site help to keep everyone in the loop and ready to pick up extra work if needed. Generally, teams of five to seven people perform well; bigger teams should be divided into smaller sub-teams. For many, myself included, being part of a team and all that comes with it – collaboration, problem-solving, healthy conflict, help, learning, fun – influence how happy we are at work. Gathering a team, we assess how a professional fits in the project suggested.

Types Of Teams With Their Advantages And Disadvantages

A centralized structure has a defined chain of command, while decentralized structures give almost every employee receiving a high level of personal agency. Using a Network organizational structure is sometimes a disadvantage because of its complexity. The below example of a network org chart shows the rapid communication between entities. So in summary, when deciding on a suitable organizational chart, it is important to have an understanding of the current organizational structure of your company. A network structure is especially suitable for a large, multicity or even international company operating in the modern era.

type of team structure

For example, design managers might be given authority and resources to create method protocols for their teams. Or, committees of representative designers may take on specific DesignOps challenges, such as creating a design system, documenting the design process, or systematizing UX meetings. In this case — a product-based divisional structure — each division within the organization is dedicated to a particular product line. One of the most common types of organizational structures, the functional structure departmentalizes an organization based on common job functions. A horizontal or flat organizational structure fits companies with few levels between upper management and staff-level employees. The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart.

Types Of Teams Youll Find In Organisations

The major disadvantage of the flat team structure is that it can be difficult to resolve conflicts when there is no chain of command. It can be confusing for employees to determine with whom they need to speak to get approval for specific tasks. This kind of team structure is best for companies that need to take action quickly, such as tech startups. In addition, having a strong organizational structure helps to eliminate conflicts among employees.

  • Treating every idea as important keeps team members from holding back some “half-baked” thought that could be just what the team needed.
  • Order is supposed to emerge from the bottom up, rather than rely on top-down command and control as in traditional organizational structures.
  • One of the biggest advantages of this structure is that it enables the regions to make decisions based on what is best for them.
  • In essence, an organized structure creates an efficient and streamlined system that helps improve company operations overall.
  • We’ll dive into centralized and decentralized organizational structures in the further section.
  • Large companies of any sort, but especially in manufacturing industries, are the best fit for this structure.

DevOps teams are usually made up of people with skills in both development and operations. Some team members can be stronger at writing code while others may be more skilled at operating and managing infrastructure. However, in large companies, every aspect of DevOps – ranging from CI/CD, to IaaS, to automation – may be a role. This can include a release manager who coordinates type of team structure and manages applications from development through production, to automation architects who maintain and automate a team’s CI/CD pipeline. Sometimes, there is a need to address outsource companies to complete specific projects. Experts brought from external departments work on a task for some time and return to their companies once the project is done and the contract is ended.

Types Of Organizational Structures

However, note that the number of layers in hierarchical structure varies per organization. For instance, a bigger and more complex team would demand more than 4 primary layers. Total quality management aims to hold all parties involved in the production process as accountable for the overall quality of the final product or service. Of the type of chart, positions, levels, functions, process and qualities in the organization.

As a company grows, it needs to make sure everyone knows what’s expected of them. Once you’ve established your chain of command, you’ll need to consider which people and departments have a say in each decision. A clear understanding of your company’s strategy lets you filter out irrelevant organizational structure types and pick the one that fits with your core values, mission, and goals. On one hand, this structure enables organizations to streamline business processes, develop clear career paths, and reduce conflicts.

This article will try to help you find out more useful information about team types and consider their pros and cons. These teams are formed by employees with common interests such as implementing energy-saving initiatives. Everyone has their own style of behaviour and communication that can hardly suit someone else’s. In practice it means, you should be adaptive to change, treat people as humans, not as human resources, and deliver an individual solution to every problem that comes up. Working in an Agile environment, you always have an opportunity to suggest hypotheses and put them to the test.

One Product Manager Per Product Or Feature

If a DesignOps team of one can successfully benchmark and measure the growing success of initial DesignOps efforts, it often creates buy-in for additional DesignOps roles. There is at least some level of formal acknowledgement and buy-in for optimizing the design process and allowing at least one person to take on this work full time. This burden is exacerbated if the existing designer must prove success of some DesignOps initiatives before being granted full-time focus. This DesignOps team of one is typically focused on damage control through necessity, making sense of the backlog of operational debt and tackling the most obvious pain points one at a time.

Each of these divisions has an executive who manages how that branch operates, controls its budgets and allocates its resources. One example of the divisional structure is a car company that separates its company into SUV, electric or sedan vehicle branches. While each branch has its own function, they all work toward the same goal of making a sale. A circular organizational structure relies on a hierarchy to depict higher-level employees within the inner rings of a circle and the lower-level employees on the outer rings. Seated at the center of the organization, leaders do not send orders down the chain of command, but rather outward.

From the very start, we hold calls with the product manager, architecture, and sales specialist, who try to learn what the client needs in particular. We learn what challenges they are facing to gather a team that would respond to these challenges. The individual approach to team structuring is at the core of the process. When employees are divided into teams according to their skills and expertise, the risk of overlapping job duties is eliminated. For example, if a project is assigned to one team, the other teams know it’s not their responsibility to take it on because they have their own tasks outlined as well.

This role works across multiple designers or design teams to identify the biggest operational challenges and develop consistencies and standards that will benefit all teams. While individual teams without a unifying DesignOps structure have the benefit of choosing tools and methods autonomously, the biggest issue within a scattered structure is often lack of consistency. DesignOps is vast landscape of opportunity, because there are many elements related to enabling consistent, quality design. The process of building an efficient team begins with organizational structure and ends with environment and culture. To ease the entire process of roles and responsibilities, you can designate team leads within each department. Instead of defining roles to several members within a team, you can explain them to the leaders and hold them accountable for communicating your expectations.

Devops Team Structure: Types, Roles & Responsibilities

Similar to a hierarchical organizational structure, a functional org structure starts with positions with the highest levels of responsibility at the top and goes down from there. Primarily, though, employees are organized according to their specific skills and their corresponding function in the company. A person may be on both a process work group and a project team, but that does not have to be the case. Finally, we need focus work teams to maintain a constant focus on those performance areas key to the organization. Example focus areas include safety, cost reduction, waste reduction, recognition, and management. Project teams are focused on a few objectives and usually disbanded at a project’s end.

In contrast, a strong organizational structure helps to coordinate teamwork, reduce conflicts, and boost productivity. Large enterprises require an established, organized structure to coordinate large numbers of employees and avoid chaos. But smaller businesses and startups rarely think of designing an organizational structure in the first place. The team members, themselves are responsible for the decisions and working. They identify and define roles and responsibilities on their own, work together to resolve issues, and set expectations.

Unlike with a more traditional, top-down structure, a circular structure can make it difficult for employees to figure out who they report to and how they’re meant to fit into the organization. Here’s a breakdown of both ends of the structural spectrum, their advantages and disadvantages, and which types of businesses are suited for them. Then, if you need to pivot or shift your leadership, you can visualize how the work flows would work by adjusting your organizational structure diagrams. Whatever structure you choose, you’ll need to make an effort to implement it.