"An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims."
The levels of authority within an organization, including top management, middle management, and lower-level employees.
Levels of Hierarchy: Refers to the different levels or tiers that exist in an organizational structure, such as top-level management, middle management, and front-line employees.
Chain of Command: The formal path of communication and authority that is established within an organization, outlining who reports to whom and who has decision-making power.
Span of Control: The number of subordinates that a manager or supervisor can effectively oversee, which can impact the overall structure of the organization.
Line vs. Staff: The distinction between employees performing operational tasks (line) and those providing support functions (staff).
Departmentalization: The grouping of employees based on their functions, such as finance, marketing, or human resources.
Centralization vs. Decentralization: The degree to which decision-making power is concentrated at the top versus being distributed throughout the organization.
Formal vs. Informal Structure: The official hierarchy outlined in an organization's chart versus the informal relationships and communication patterns that develop among employees.
Functional, Divisional, and Matrix Structures: Different types of organizational structures that can be used depending on the needs of the organization, such as a team-based matrix structure or a product-focused divisional structure.
Organizational Culture: The shared values, beliefs, and behaviors that define the working environment within an organization and can impact the hierarchy and overall effectiveness of the organization.
Change Management: The process of planning and implementing changes to an organization's structure, culture, or processes, which can impact the hierarchy and require careful planning and communication.
Functional Hierarchy: This type of hierarchy is based on the organizational functions and departments, where each employee is designated a specific role or job function. A clear hierarchy is established, where each function is headed by an executive in charge.
Flat Hierarchy: This type of hierarchy is opposed to the traditional structure, where there are multiple levels of authority. Here, the organization is structured horizontally, with fewer levels of management and provides more autonomy to employees.
Matrix Hierarchy: Here, the structure of the organization is based on various teams addressing specific projects. Each team is headed by a manager, who coordinates with various functions and departments to achieve project goals.
Divisional Hierarchy: Here, an organization's different business units or product lines are divided, each with its independent functions, yet managed by a centralized corporate team.
Geographic Hierarchy: Here, the organization is divided regionally or geographically, with each location having its own designated management team.
Holacracy Hierarchy: Here, the structure is more employee-centric, where teams manage their assigned roles and responsibilities without any assigned manager.
Hybrid Hierarchy: This structure is a combination of more than one hierarchy structure, primarily to address complex and diverse business needs.
Tall Hierarchy: As the name suggests, tall hierarchy is a structure with several organizational levels, resulting in a long chain of command.
Bureaucratic Hierarchy: Here, there is a rigid set of procedures and protocols that need to be followed to maintain control over the organization.
Circular Hierarchy: This type of hierarchy aims at achieving a more common and democratic decision-making process, giving equal importance to every employee and addressing shared values, vision, and goals.
"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."