ORGANISATION SECTOR
India Quick Deal An organizational structure is a system that guides how certain activities are directed to achieve the goals of an organization. The organizational structure also determines how information flows between levels within the company. Decisions flow from the top down in a centralized structure. Decision-making power is distributed among various levels of the organization in a decentralized structure. Having an organizational structure in place allows companies to remain efficient and focused.
Key Takeaways
An organizational structure maps how certain tasks will lead to certain specific desired outcomes of a company.
Successful organizational structures define each employee's job and how it fits within the overall system.
A centralized structure has a defined chain of command. Decentralized structures give almost every employee a high level of personal agency.
Types of organizational structures include functional, divisional, flatarchy, and matrix structures.
Senior leaders should consider a variety of factors including the business's goals, industry, and culture before deciding which type of organization is best for their businesses.
Understanding an Organizational Structure
Businesses of all shapes and sizes heavily use organizational structures. They define a specific within an organization. A successful organizational structure defines each employee's job and how it fits within the overall system. The organizational structure lays out who does what so the company can meet its objectives.
This structuring provides a company with a visual representation of how it's shaped and how it can best move forward in achieving its goals. Organizational structures are normally illustrated in some sort of chart or diagram like a pyramid where the most powerful members of the organization sit at the top and those with the least amount of power are at the bottom.
Not having a formal structure in place can prove difficult for certain organizations. Employees may have difficulty knowing to whom they should report. That can lead to uncertainty as to who is responsible for what in the organization.