Definition of Organizational Structure



Organizational structure is a system developed by the organizations to explain how different activities within the organization are performed. This structure is important in determining the nature of the task, task allocation, supervision, information flow and coordination among team. The goal of developing an organizational structure is to achieve company goals effectively.

 


Organizational structure is important in developing standard operating procedures and routines. This explains who will perform which tasks and whom to report. For example: In a centralized structure, all decisions and information move from top to bottom while in a decentralized structure, decisions are made at various levels of the organization.

 

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