Chapter 16, Problem 1CRQ

What is an organizational structure?

Summary Introduction

To determine:

The concept of organizational structure.

Introduction:

The organization structure would explain how authority is distributed, how communication should flow, the responsibilities, reporting lines and span of control. These are essential tools in organization management.

Explanation of Solution

An organizational structure is a system which allows achieving and interrelating business activities within the work organization. It involves taking up tasks and holding relationships in line to achieving organizational goals.

The organization structure would explain how authority is distributed, how communication should flow, the responsibilities, reporting lines and span of control. These are essential tools in organization management.

A well planned structure provides consistency by offering clear reporting lines and power distribution. Each individual in the organization would know where they fall in the structure and will act according to it. Task allocation and communication becomes much easier and as a result effectiveness and efficiency should improve.

The way the structure is to be designed depends on factors such as size of the organization, type of products service, objectives, resources, complexity of the environment, etc. This is how every organization also tends to have its own unique structure.