It is named a "tree structure" because the classic representation resembles a tree, even though the chart is generally upside down compared to a biological tree, with the "stem" at the top and the "leaves" at the bottom. Some Types of Organizational Structure To better illustrate the importance of organizational structures, it helps to understand the … Structural analysis is the determination of the effects of loads on physical structures and their components.Structures subject to this type of analysis include all that must withstand loads, such as buildings, bridges, aircraft and ships. A tree structure or tree diagram is a way of representing the hierarchical nature of a structure in a graphical form. A Work Breakdown Structure is a way of organizing a project by functional areas to segment the work to be done so that it has a logical structure that maps to the overall solution functionality. Business owners must understand the purpose of their business structure so they can explain it to their employees and lead them through changes in organizational structure, when needed; it doesn't matter whether they are in a start-up phase or just operating the business. The purpose of organizational structure involves various aspects of productivity, accountability, communication and achieving results.