What are the types of organisation?

In business management, organizations are typically categorized in several ways. Here are the main types:

1. By Ownership: - Profit organizations (Business corporations, partnerships) - Non-profit organizations (Charities, NGOs, trusts) - Government organizations (Public sector undertakings)

2. By Legal Structure: - Sole Proprietorship - Owned by one person - Partnership - Owned by two or more people - Limited Liability Company (LLC) - Hybrid structure - Corporation - Separate legal entity

3. By Purpose: - Service organizations (Banks, hospitals, schools) - Manufacturing organizations (Factories, production units) - Trading organizations (Wholesalers, retailers)

4. By Size: - Small scale (Less than 50 employees) - Medium scale (50-250 employees) - Large scale (More than 250 employees)

Modern organizations also include virtual organizations, network organizations, and hybrid models that combine different structures!

As a business consultant, I see organizations through a slightly different lens. Here are the main organizational structures that determine how work gets done:

Line Organization - Traditional military-style hierarchy with clear chain of command

Functional Organization - Grouped by specialized functions (marketing, finance, operations)

Line and Staff Organization - Combines line hierarchy with specialist staff advisors

Project Organization - Temporary teams formed for specific projects

Matrix Organization - Employees report to both functional managers and project managers

What's interesting is that most modern companies use hybrid models. For example, a tech company might have: - Functional departments (engineering, sales) - Matrix teams for product development
- Project teams for special initiatives

The choice depends on company size, industry, and strategic goals. There's no "one size fits all" - the best structure is the one that helps the organization achieve its objectives efficiently.

Let me add the formal vs informal perspective that often gets overlooked:

Formal Organization - The official structure with defined roles, hierarchy, and rules - Organization charts - Job descriptions - Official communication channels - Documented policies and procedures

Informal Organization - The unofficial networks and relationships that actually make things happen - Office friendships and cliques - Unofficial leaders and influencers - Grapevine communication - Social networks within the company

What's crucial to understand: Every formal organization has an informal organization operating within it. The informal org often determines the real culture, communication flow, and how work actually gets accomplished.

Smart managers pay attention to both - you can design the perfect formal structure, but if it conflicts with the informal organization, you'll have implementation problems!

The Harvard Business Review has some excellent articles about managing this balance in modern workplaces.