Organizational Structure

Organizational structure refers to how individual and team work within an organization are coordinated. To achieve organizational goals and objectives, individual work needs to be coordinated and managed. Structure is a valuable tool in achieving coordination, as it specifies reporting relationships (who reports to whom), delineates formal communication channels, and describes how separate actions of individuals are linked together. Organizations can function within a number of different structures, each possessing distinct advantages and disadvantages. Although any structure that is not properly managed will be plagued with issues, some organizational models are better equipped for particular environments and tasks.

An organization is defined as a group of people working together to achieve common goals. Organizational structure specifies the jobs to be done within an organization and how those jobs relate to one another. In every organization, the top management establishes organization’s goals which are redefined to obtain measurable performance targets. Such measurable parameters help the management monitor employees and ensure that they are aligned with organizational goals. The management also develops strategies that will enable the organization meet its goals. The implementation of these strategies requires a formal structure of authority and responsibilities. In this chapter, the elements that form the basis of organizational structure, widely used organizational structures and the impact of organizational structure on employee behavior are explained


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Organizational Behavior by Icfai Business School is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.