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A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. The organizational structure determines how the organization performs or operates. The term "organizational structure" refers to how the people in an organization are grouped and to whom they report.
Choosing a structure for a company is an important decision and must be strategically thought out because it could either aid or harm the making of business. The structure must also be a good fit for the type of activities, goals, and vision of the company. [3] The organizational structure is a reflection of how conveniently business is conducted.
Due to the vast potentially different combination of the employees’ formal hierarchical and informal community participation, each organization is therefore a unique phenotype along a spectrum between a pure hierarchy and a pure community (flat) organizational structure." Lim, M., G. Griffiths, and S. Sambrook. (2010).
An organizational chart, also called organigram, organogram, or organizational breakdown structure (OBS), is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. The term is also used for similar diagrams, for example ones showing the different elements of a field of ...
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Governmental organizations and most companies feature similar hierarchical structures. [4] Traditionally, the monarch stood at the pinnacle of the state.In many countries, feudalism and manorialism provided a formal social structure that established hierarchical links pervading every level of society, with the monarch at the top.
A good organization structure is essential for expanding a business activities. Organization structure determines the input resources needed for expansion of a business activity; similarly organization is essential for product diversification such as establishing a new product line. it also stimulates creativity in managers by organizing.