What Is an Organizational Structure

It refers to the hierarchical structure of an organization along with the tasks divided up the order and how does it flow to the end of the row. There are two fundamental requirements of organization structure, one is the labor division and the other is coordination. Division of labor into different tasks leads to specialization of work force in the areas of their expertise. Coordination helps in connecting the work force towards organization goals.

Coordination of labor can happen only when their easy communication, official hierarchy and calibration. Let’s now see the different elements of organization structure:

  • Departmentalization
    This involves dividing of organization into different departments with accountable heads in charge of each department.
  • Span of Control
    This element is very important because caution should be taken to check how many employees are their for a supervisor to control and delegate tasks to them.
  • Formalization
    This takes care of the rules and regulations followed in an organization. In some organizations a team is set up to oversee the arriving and departing time of employees of an organization.
  • Centralization
    This element of organization structure is the most important one. The acts were all the activities are combined into one head. For example like our government at the center taking care of all activities.

Organization structure can be of four types:

  • The Line Structure
    Here the power moves from top to down. This type of organization structure is very common in small organizations. Here we have line managers who gather and study information that is needed to carry out responsibilities.
  • The Line and Staff Structure
    This type usually is taken by medium and large organizations. Here their will other staff also to help the line managers. Other staff are those who are heads of various departments like human resource, accounting, advertising etc. but reports to line managers.
  • The Matrix Structure
    This structure helps the employees of other departments to temporarily help them on some special projects. It has greater flexibility to quickly respond to consumers needs since they work together as teams.
  • The Team Structure
    This structure brings together people with different skills together to meet a particular objective. In this structure the decisions taken by lower management need not be approved by senior management. The teams that work on a project has the authority to make final decisions.

The kind of organization structure a company wants finally depends on the company size, the kind of products it deals with, its work functions, kind of corporate strategies it formulates and the kind of senior management team it comprises of.