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Organisational structure is essential to be formed as they control the productivity and profitability in most effective manner. When organisational structures are formed, they are formed based on the type of format companies (small, medium and large). It is not necessary that to maintain the uniformity of hierachies . It always depends on type and the size of industry. Organizations can be regarded as people management systems. They range from simple hierachies along traditional lines to complex networks dependent on computer systems and telecommunications. Human resource managers can encourage organizations to adopt strategies (for their structures) which foster both cost-effectveness and employee commitment. Organizational structures can be classified into a number of types, including functional, divisional, matrix, federations and networks.

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