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Blog Hubspot Com Marketing Team Structure Diagrams
Choosing the best organizational structure for your company, division, or team is
a lot like picking out a new car.
At the most basic level, you're always looking for something road-worthy —
something that can take you (and your passengers) from point A to point B
without a hitch.
But beyond that, there are a lot of options to consider. Automatic or manual?
Four-wheel drive or two? Built-in GPS? Leather interior? Flux capacitor? (Only if
you're going back in time, of course.)
In the world of organizational structures, the options you have to choose from
include things like chain of command (long or short?), span of control (wide or
narrow?), and centralization (centralized or decentralized decision-making?), just
to name a few.
Organizational Structure
Then, if you need to pivot or shift your leadership, you can visualize how the
workflows would work by adjusting your organizational structure diagrams.
To put it simply, an organizational structure is like a map that simply explains how
your company works and how its roles are organized.
Organizational Structure
Gude + Templates
Build a visual org structure with these free templates.
Geographical Org
Functional Org Structure
Structure
Chain of Command
Your chain of command is how tasks are delegated and work is approved. An org
structure allows you to define how many "rungs of the ladder" a particular
department or business line should have. In other words, who tells whom to do
what? And how are issues, requests, and proposals communicated up and down
that ladder?
Departmentation
Departmentation is one of the most important elements of your organizational
structure. It clusters your teams by similar roles and responsibilities and allows
you to understand how each department connects to one another.
Span of Control
Your span of control can represent two things: who falls under a manager's, well,
management ... and which tasks fall under a department's responsibility. Having a
defined span of control not only avoids double-work from your different teams,
but helps you identify gaps in your structure.
Centralization
Centralization describes where decisions are ultimately made. Once you've
established your chain of command, you'll need to consider which people and
departments have a say in each decision. A business can lean toward centralized,
where final decisions are made by just one or two entities; or decentralized, where
final decisions are made within the team or department in charge of carrying out
that decision.
You might not need an org structure right away, but the more products you
develop and people you hire, the harder it'll be to lead your company without this
crucial diagram.
Below, we'll explore how you can combine those components to form different
types of organizational structures. We'll also highlight the benefits and drawbacks
of different structure types so you can evaluate which is the best option for your
company, division, or team. Let's dive in.
Take a look at the diagram below. As you'll probably be able to tell, the
mechanistic structure represents the traditional, top-down approach to
organizational structure, whereas the organic structure represents a more
collaborative, flexible approach.
Here's a breakdown of both ends of the structural spectrum, their advantages and
disadvantages, and which types of businesses are suited for them.
Mechanistic Structure
Mechanistic structures, also called bureaucratic structures, are known for having
narrow spans of control, as well as high centralization, specialization, and
formalization. They're also quite rigid in what specific departments are designed
and permitted to do for the company.
This organizational structure is much more formal than organic structure, using
specific standards and practices to govern every decision the business makes.
And while this model does hold staff more accountable for their work, it can
become a hindrance to the creativity and agility the organization needs to keep
up with random changes in its market.
Organic Structure
Organic structures (also known as "flat" structures) are known for their wide spans
of control, decentralization, low specialization, and loose departmentalization.
What's that all mean? This model might have multiple teams answering to one
person and taking on projects based on their importance and what the team is
capable of — rather than what the team is designed to do.
As you can probably tell, this organizational structure is much less formal than
mechanistic, and takes a bit of an ad-hoc approach to business needs. This can
sometimes make the chain of command, whether long or short, difficult to
decipher. And as a result, leaders might give certain projects the green light more
quickly but cause confusion in a project's division of labor.
Nonetheless, the flexibility that an organic structure allows for can be extremely
helpful to a business that's navigating a fast-moving industry, or simply trying to
stabilize itself after a rough quarter. It also empowers employees to try new
things and develop as professionals, making the organization's workforce more
powerful in the long run. Bottom line? Startups are often perfect for organic
structure, since they're simply trying to gain brand recognition and get their
wheels off the ground.
Now, let's uncover more specific types of organizational structures, most of which
fall on the more traditional, mechanistic side of the spectrum.
5. Process-Based Structure
6. Matrix Structure
7. Circular Structure
8. Flat Structure
9. Network Structure
Depending on the size of a business and its goals, the organizational structure of
the team will vary. Each type has its advantages and disadvantages; however,
there is a universal benefit to establishing a clear organizational structure. It helps
employees understand their role within a company, which enables them to manage
expectations and goals.
Organizational Structure
Gude + Templates
Build a visual org structure with these free templates.
Geographical Org
Functional Org Structure
Structure
An organization with a functional org structure, for instance, would group all of the
marketers together in one department, group all of the salespeople together in a
separate department, and group all of the customer service people together in a
third department.
The functional structure allows for a high degree of specialization for employees,
and is easily scalable should the organization grow. Also this structure is
mechanistic in nature — which has the potential to inhibit an employee's growth —
putting staff in skill-based departments can still allow them to delve deep into
their field and find out what they're good at.
Disadvantages
Functional structure has the potential to create barriers between different functions — and
it can be inefficient if the organization has a variety of different products or target
markets.
The barriers created between departments can also limit peoples' knowledge of and
communication with other departments, especially those that depend on other
departments to succeed.
Advantages
It also allows departments — with employees who share similar skills and knowledge — to
focus on their specialized tasks within their respective fields.
Because the roles and responsibilities of this organizational structure example rarely
change, department employees can consistently work on similar assignments and hone
their skills.
This type of structure is ideal for organizations with multiple products and can
help shorten product development cycles. This allows small businesses to go to
market with new offerings fast.
Disadvantages
The organization could end up with duplicate resources as different divisions strive to
develop new offerings.
Advantages
Companies and their employees can experience the benefits of the product-based
divisional structure.
If one division performs poorly, this does not automatically translate across the
organization.
Because of their separation, divisions may flourish (or fail) concurrently. This system
allows companies to mitigate risk.
Disadvantages
Too much autonomy within each market-based team can lead to divisions developing
systems that are incompatible with one another.
Divisions might also end up inadvertently duplicating activities that other divisions are
already handling.
Advantages
The divisions work separately, which allows employees to work independently and enables
them to focus on the needs of their particular industry.
Disadvantages
When you have more than one marketing department — one for each region — you run the
risk of creating campaigns that compete with (and weaken) other divisions across your
digital channels.
Advantages
Not only does it allow organizations to tailor their approach based on geography, but it
allows the division to react quickly and efficiently to any geographical market changes.
5. Process-Based Structure
Process-based organizational structures are designed around the end-to-end flow
of different processes, such as "Research & Development," "Customer Acquisition,"
and "Order Fulfillment." Unlike a strictly functional structure, a process-based
structure considers not only the activities employees perform, but also how those
different activities interact with one another.
In order to fully understand the diagram below, you need to look at it from left to
right: The customer acquisition process can't start until you have a fully developed
product to sell. By the same token, the order fulfillment process can't start until
customers have been acquired and there are product orders to fill.
Download the Template
Disadvantages
Similar to a few other structures on this list, process-based structure can erect barriers
between the different process groups.
It may lead to problems communicating and handing off work to other teams and
employees.
Advantages
As mentioned, one of the most significant benefits of the process-based structure is that it
increases efficiency and speed. If Department B cannot start its processes until
Department A finishes, this compels Department A to work promptly and proficiently.
This organizational model also promotes intradepartmental (within the department) and
interdepartmental (across multiple departments) teamwork.
Organizational Structure
Gude + Templates
Build a visual org structure with these free templates.
Geographical Org
Functional Org Structure
Structure
6. Matrix Structure
Unlike the other structures we've looked at so far, a matrix organizational
structure doesn't follow the traditional, hierarchical model. Instead, all employees
(represented by the green boxes) have dual reporting relationships. Typically, there
is a functional reporting line (shown in blue) as well as a product- based reporting
line (shown in yellow).
When looking at a matrix structure org chart, solid lines represent strong, direct-
reporting relationships, whereas dotted lines indicate that the relationship is
secondary, or not as strong. In our example below, it's clear that functional
reporting takes precedence over product-based reporting.
The main appeal of the matrix structure is that it can provide both flexibility and
more balanced decision-making (as there are two chains of command instead of
just one). Having a single project overseen by more than one business line also
creates opportunities for these business lines to share resources and
communicate more openly with each other — things they might not otherwise be
able to do regularly.
Disadvantages
The primary pitfall of the matrix organizational structure? Complexity. The more layers of
approval employees have to go through, the more confused they can be about who
they're supposed to answer to.
This confusion can ultimately cause frustration over who has authority over which
decisions and products — and who's responsible for those decisions when things go wrong.
Advantages
An advantage of a matrix structure is that it promotes collaboration and communication.
This open line of communication ultimately allows businesses to share resources and
allows employees to develop new skills from working with different departments.
7. Circular Structure
While it might appear drastically different from the other organizational structures
highlighted in this section, the circular structure still relies on hierarchy, with
higher-level employees occupying the inner rings of the circle and lower-level
employees occupying the outer rings.
That being said, the leaders or executives in a circular organization aren't seen as
sitting atop the organization, sending directives down the chain of command.
Instead, they're at the center of the organization, spreading their vision outward.
Disadvantages
From a practical perspective, the circular structure can be confusing, especially for new
employees.
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.
Advantages
Its benefits include keeping all employees aligned with the processes and goals of the
company and encouraging employees to collaborate between departments.
8. Flat Structure
While a more traditional organizational structure might look more like a pyramid
— with multiple tiers of supervisors, managers and directors between staff and
leadership, the flat structure limits the levels of management so all staff are only a
few steps away from leadership. It also might not always take the form or a
pyramid, or any shape for that matter. As we mentioned earlier, It's also a form of
the "Organic Structure" we noted above.
This structure is probably one of the most detailed, It's also thought that
employees can be more productive in an environment where there's less
hierarchy-related pressures. This structure might also make staff feel like the
managers they do have are more like equals or team members rather than
intimidating superiors.
Disadvantages
Because of how complicated the structure's design is, it can be tricky to determine which
manager an employee should go to if they need approval or an executive decision for
something.
If you do choose to have a flat organization, you should have a clearly marked tier of
management or path that employers can refer to when they run into these scenarios.
Advantages
The elimination of middle management employees defines the flat structure type. Its
advantages are instantaneous. First, it reduces the expenses of the company.
9. Network Structure
A network structure is often created when one company works with another to
share resources — or if your company has multiple locations with different
functions and leadership. You might also use this structure to explain your
company workflows if much of your staffing or services is outsourced to
freelancers or multiple other businesses.
The structure looks nearly the same as the Divisional Structure, shown above.
However, instead of offices, it might list outsourced services or satellite locations
outside of the office.
If your company doesn't do everything under one roof, this is a great way to show
employees or stakeholders how outsourcing of off-site processes work. For
example, if an employee needs help from a web developer for a blogging project
and the company's web developers are outsourced, the could look at this type of
chart and know which office or which person to contact outside of their own work
location.
Disadvantages
The shape of the chart can vary based on how many companies or locations you're
working with. If it's not kept simple and clear, there may be a lot of confusion if multiple
offices or freelancers do similar things.
If you do outsource or have multiple office locations, make sure your org chart clearly
states where each specific role and job function lies so someone can easily understand
your basic company processes.
Advantages
The outsourcing nature of the network structure provides companies with the advantages
of lower costs, more focus, and increased flexibility.
Outsourcing allows organizations to save money, as they don’t have to bear the expense
of setting up a department for the same purpose.
It also gives companies the flexibility to change their processes and the ability to focus on
their core functions.
Organizational Structure
Gude + Templates
Build a visual org structure with these free templates.
Geographical Org
Functional Org Structure
Structure
We’ll start with organizational structure examples for both companies and
nonprofits, then delve into team-specific charts.
Image Source
Nonprofits are structured differently than a company, and are usually much
smaller and scrappier. In this nonprofit organizational structure example, we see a
flat-type of structure, where every employee is only just a few steps away from
the director. There are no internal movement opportunities, which works well at
most nonprofits. Instead, the focus is on steering the organization to meet its
program goals.
Notice that the leader is not the director, but rather the board, who interfaces
directly with the director to relay organizational decisions.
Your marketing team, however, can also adopt a matrix organizational structure if
you laterally divide your individual contributors and managers based on region,
country, project, or another factor.
Image Source
While these are each at different stages of their careers, they are all at the same
level and are responsible for a specific function within the team.
This is another functional org chart example, but this time, it’s for IT. In this
example from the University of Michigan, the IT department is divided based on
function. Overseen by a Chief Technology Officer, three directors supervise
security, infrastructure, and operations; applications; and institutional research
and effectiveness.
Image Source
Conversely, if there’s only one product, then the entire company may be a product
organization. This time, the organization would be structured based on process,
like the example below.
Image Source
Image Source
Some companies may have naturally fallen into a functional org structure, in which
case it’s only a matter of creating an org diagram. Others may be in the process
of creating one. Here are the steps to determine an org structure from scratch:
Audit your organization’s teams and roles. First, it’s essential to understand which
teams and roles already exist within your business. If your business is new, create a list of
planned teams and hires.
Draft a company strategy. Your org structure should support your strategy, not detract
from it. If your strategy is to launch X new products in the market, then a product-based
divisional structure might work well for you.
Gather feedback from existing employees. Your existing employees are a gold mine of
information when creating an organizational structure. Some employees might want to be
closer to leadership; others might want advancement opportunities. For the first, a flat
structure would fit, and for the second, a functional structure would be best.
Gather feedback from other leaders. Just as employees’ voices matter, so, too, do
leaders’ voices matter. Understand their key goals and the support they need to do their
best work at your firm.
Align your company strategy, employee feedback, and leadership feedback with an
org structure. Take a look at organizational structure types and try to align them with the
data and observations you’ve collected. Sometimes, the decision will be clear; other
times, you’ll need to continue interviewing and gathering data to find the best structure for
you.
Create an org chart. Now that you’ve chosen the right org structure, it’s time to create a
visual chart that shows your company’s chain of command, departmentation, span of
control, and centralization at a minimum. Share this chart over email and be sure to keep
it in an easy place for all employees to access.
Structure types will vary from business to business, so it’s important to remember
that these structures are not one size fits all. Every type may not suit your
organization, but chances are, one of them will. Use this post to determine which
organizational structure works for you, and then it’s time for the real work to
begin.
Editor's note: This post was originally published in December 2014 and has been
updated for comprehensiveness.
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