Directorate of distance education master of business administration

Traditional Type Organization 
Classical literature identifies organizational structure mainly 
under three categories: 
 
ӹ Functional (or Traditional) type organization. 
 
ӹ Product (or Process) type organization 
 
ӹ Matrix type organization. 

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Functional type 
Here the structure is built up on specialization. Departments are 
grouped, based on specialized knowledge available, viz., production, 
marketing, sales, materials and finance.
 
 
Chief Executive 
Proto 
type 
dev. 
 
Sales  
 
Advt. 
 
Production 
Accounts   
Personnel  
Administration  
  Dev  = Development 
 
 
Advt = Advertisement 
 
         Fig. 2.1(a) Functional Type Organization
Pure product Type Organization 
 
Here the organization is developed with production managers as 
the line managers who are specialists of a particular type of product or 
process. See Fig. 2.1(b) 
 
Production Manager 
Pacing 
cases 
Machine 
shop  
Product-A 
division  
Product-B 
division  
Production 
division  
Electro 
plating  
Fig. 2.1(b) Process Type Organization