One of the most important elements of that the organizational structure relies on is the size of the company. It is possible to start with you alone (you play all roles) and begin to form and expand whenever you hire someone to work in your company. The organizational structure defines the missions performed by each employee and the nature of relationship of employees among each other. For example, in some companies the staff uses titles such as "Mr." or "Mrs." is during their daily functions, while the atmosphere in other companies does not impose this type of dealing.
Organizational structure has several types including:
1. Hierarchical type: It is used by large companies with large number of employees. One of its most important features is that communication between employees is always governed by the grade of the employee. Each grade is reported to the direct officer that will be his sole reference in decision making.
2. Flat type: It is used by organizations with less number of employees. One of the most important features that the communication between employees is not governed by the employee's grade, where communication of staff with administration is more easily.