Two structures of authority coexist in colleges and universities: one that manages the supporting functional services and one that deals with the production areas of scholarship, teaching, and learning. This literature review defines organizational structure, discusses traditional organization models such as bureaucratic models, and outlines the dichotomy between product and function organizational structures. Modern approaches of organizational structure that give attention to the dual authority structure are then reviewed, including matrix organization structure and contingency organization structure. The review confirms that colleges and universities have a "special problem" not experienced by industry that is related to the product versus function structural organization designs. Both the matrix and the contingency structures have the potential to deal effectively with the dual authority structure found in higher education, though both would require a re-education approach and a commitment to effective communications within the institution. Includes 34 references. (Jdd).