What is Organizational Structure?
A key issue in accomplishing the goals identified in the planning
process is structuring the work of the organization.
groups of people, with ideas and resources, working toward common goals. The purpose of the organizing function is to make
the best use of the organization's resources to achieve organizational goals.
Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and
coordinated. Formalization is an important aspect of structure. It is the extent to which the units of the organization are
explicitly defined and its policies, procedures, and goals are clearly stated. It is the official organizational structure
conceived and built by top management. The formal organization can be seen and represented in chart form. An organization
chart displays the organizational structure and shows job titles, lines of authority, and relationships between departments.
is the framework that enables employees to work together productively. It allows adequate management to be provided for each
group. Because of the organizational structure, employees know where to report and whom to ask for help. Often a company exhibits
the formal organizational structure on an organizational chart. This is a diagram that traditionally shows boxes to indicate
functions, with connecting lines to indicate relationships. The relationships can also be called the chain of command. This
shows flow of authority, accountability, and responsibility. Authority is the power granted by the job description to make
decisions, take actions, and allocate resources. Accountability is the duty to inform and update supervisors. Responsibility
is the obligation to perform the job requirements and meet objectives.