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HomeHomework Helpbusiness-managementOrganizational Structure

Organizational Structure

Organizational structure refers to the system that outlines how certain activities are directed in order to achieve an organization's goals, including roles, responsibilities, and the flow of information within the organization.

beginner
2 hours
Business Management
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Overview

Organizational structure is a fundamental aspect of any organization, determining how tasks are divided and how authority flows. It plays a crucial role in ensuring that employees understand their roles and responsibilities, which in turn affects overall efficiency and productivity. Different types ...

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Key Terms

Hierarchy
A system of organization where people or groups are ranked one above the other according to status or authority.

Example: In a company, the CEO is at the top of the hierarchy.

Departmentalization
The process of dividing an organization into different departments, which perform specific tasks.

Example: A company may have separate departments for marketing, finance, and human resources.

Span of Control
The number of subordinates a manager or supervisor can effectively manage.

Example: A narrow span of control means a manager oversees fewer employees.

Chain of Command
The line of authority within an organization, outlining who reports to whom.

Example: In a military organization, the chain of command is strictly followed.

Functional Structure
An organizational structure that groups employees based on their functions or roles.

Example: In a functional structure, all marketing staff report to the marketing manager.

Divisional Structure
An organizational structure that groups employees based on products, services, or geographical locations.

Example: A company may have separate divisions for its North American and European markets.

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Team Dynamics
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Organizational Culture
Discusses the values, beliefs, and behaviors that shape how work gets done in an organization.
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Key Concepts

HierarchyDepartmentalizationSpan of ControlChain of Command