"An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims."
The way organizations are structured, including the hierarchy of authority, chain of command, and reporting relationships.
Types of organizational structures: Understanding the various types of organizational structures like flat, hierarchical, matrix, network, and decentralized so that one can build knowledge about fundamental aspects of each type.
Structural components: Knowing about the different components like departments, work teams, functional units, or divisions, and their interrelationships between them.
Centralization vs. Decentralization: Exploring how the power and authority are dispersed across the organization and difference between centralized and decentralized structures.
Span of control: Understanding the principle of how many individuals a manager can supervise, and the impact of having narrow or wide spans.
Chain of command: Knowing the hierarchy of decision-making power, responsibilities, and accountabilities that flow from top to bottom within an organization.
Unity of Command: Exploring the notion that employees should only respond to one boss to avoid confusion and conflict and to ensure accountability.
Line and staff function: Understanding the difference between the line function (directly involved in the core organizational production) and the staff function (providing support).
Departmentalization: Knowing about the ways to group similar activities into departments, like product, customer, geography, or process.
Integration: Understanding how different departments coordinate to achieve a common objective.
Formal and informal structures: Knowing how the elements of organizational culture and societal norms influence the formal and informal structures of a company.
Organizational life cycle: Understanding the different stages such as start-up, growth, maturity, and decline of an organization.
Motivation and leadership: Exploring the role of leadership in creating a motivational work environment that aligns organizational objectives and individual goals.
Decision-making processes: Understanding the criteria used to make decisions within an organization and the decision-making processes used.
Information flow: Knowing the information flow process up, down, and across the organization.
Organizational chart: Understanding the layout and use of an organizational chart, which is a visual representation of an organization structure containing the departmental hierarchy and division of labor.
Hierarchical Structure: This is the most common and traditional organizational structure in which there is a chain of command from the top to the bottom, with the CEO or top managers at the top and the employees at the bottom.
Flat Structure: This structure is the opposite of the hierarchical structure. It has fewer levels of management and a more decentralized decision-making process.
Matrix Structure: This structure combines elements of both hierarchical and flat structures. Teams work together on specific projects, but report to different managers from different departments.
Network Structure: In this structure, internal and external networks create a flexible system for decision making. There is no specific hierarchy, and decision making is based on the expertise of employees and external partners.
Divisional Structure: This structure separates the company into multiple divisions, each with its own set of products, services, or markets. Each division has its own management and decision-making team.
Team-Based Structure: This structure emphasizes teamwork and collaboration, with decision-making being made by the team as a whole.
Functional Structure: In this structure, departments are organized based on similar functions, such as finance or marketing. Each department has its own hierarchal structure.
Centralized Structure: This structure has decision-making power concentrated at the top, with little involvement from lower-level employees.
Decentralized Structure: In contrast to the centralized structure, this structure involves decision-making power being dispersed throughout the organization, empowering lower-level employees.
Holacratic Structure: In this structure, there is no traditional hierarchy, and employees are organized into self-governing circles that make decisions together.
"Organizational structure affects organizational action and provides the foundation on which standard operating procedures and routines rest."
"It determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization's actions."
"Organizational structure can also be considered as the viewing glass or perspective through which individuals see their organization and its environment."
"Organizations are a variant of clustered entities."
"An organization can be structured in many different ways, depending on its objectives."
"The structure of an organization will determine the modes in which it operates and performs."
"Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup, and individual."
"Organizations need to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive advantage."