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Several types of organization are:

1. Functional Organization

Is a direct relationship where the direct orders and instructions given directed to the personnel. In general, subordinates reports their activities direct to his superiors, as well as having limited liability. Functional organization grouping the functions of the same or similar activities in shaping an organizational unit.

The goodness of this type is that of power and position is maintained, creating efficiencies through specialization of individual expertise, and allow a more stringent monitoring of peak functions.

The weakness of the functional organization is that it can create conflict between functions, causing bottleneck sequential execution of tasks, respond more slowly, just focus on the interests of his duties, and cause its members more narrow minded and less innovative.

2. Matrix Organization

In this type, subordinate reports to one or more supervisors of a task organization. In a matrix organization, employees have two bosses so that they are in the two authorities.

The first chain of command is functional, where authority flows vertically. The second chain command is lateral or horizontal, where the flow of this authority through the department and conducted by the department heads. Two lines of authority form an organizational structure that resembles a matrix. Matrix organization can accommodate a variety of changes in technology or markets.

The goodness of this type is to maximize the efficient use of department leaders, provides flexibility to the organization, help balance creativity, as well as simplify and increase the freedom of top management in making decisions.

The weakness of this type is the double liability which can create contradictory policies, encouraging opposition power, and his decision is more directed to the approach rather than activities.

3. Centralized organization>

Another important factor that determines the effectiveness of the organization is the degree of centralization or decentralization of authority. The concept of centralization, such as the concept of delegation of authority related to the level where centralized or distributed. It is very closely related to instruction. Decentralization is a broader concept and is associated with the extent of top management to delegate authority to the departments or units further down.

In other words, centralization is the centralization of power and authority, and the nature of the decision is the instruction, while decentralization or delegation of authority is spread widely to organizations under it to make decisions.