Structure refers to the relations between the components of an organized whole. Thus, structure
concept can be used for everything. For example, the body of human being is a structure consists
of the relations between bones, organs, blood and tissues .Organizational structure is the
framework of the relations on jobs, systems, operating process, people and groups making efforts
to achieve the goals. Organizational structure is a set of methods dividing the task to determined
duties and coordinates them .Organizational structure is a method by which organizational
activities are divided, organized and coordinated. The organizations create the structures to
coordinate the activities of work factors and control the members’ actions
Businesses of all shapes and sizes use organizational structures heavily. They define a
specific hierarchy within an organization. A successful organizational structure defines each
employee’s job and how it fits within the overall system. The organizational structure helps the
company to meets its objectives. This structuring provides a company with a visual
representation of how it is 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, while those with
the least amount of power are at the bottom.
Organizational structure is the formal and informal policies and procedures companies use for
governing business operations. Smaller and home-based businesses typically do not use
organizational structures because the business owner usually is responsible for completing
the majority of business functions. Larger businesses use an organizational structure to
effectively manage business functions and employees. While the type of organizational
structure usually depends on the company’s size and operations, a few universal benefits
exist from the structures.
Improve Employee Performance