Organizational Structure Part 1

The organizational structure defines the organization's hierarchy of people and departments as well as how information flows within the organization. It also defines how job tasks are formally divided, grouped and coordinated. The Organizational Structure is important because it ensures that there is an efficient operation of a business and it clearly define its workers and their functions.

Benefits of Organizational Structure

The organizational structure also helps define the hierarchy and the chain of command

1. Structure helps influence behavior and relationships of jobs and function.
2. Structure defines recurring activities and processes. 
3. Structure provides a purposeful and goal-oriented behavior 

  

Components of Organizational Structure

Management decisions and actions that result in a specific organization structure and work specification including:-

1.  Work Specification: Specify to what degree the tasks are subdivided into separate jobs

2.  Departmentalization: The basis in which jobs will be grouped together

3.  Chain of Command: To whom do individuals and groups report to.

4.  Span of Control: The number of people that a  can a manager efficiently and effectively direct.

5.  Centralization and Decentralization: Where is the decision making authority?

6.  Formalization: To what degree will there be rules and regulations to direct employees and managers?