organizational structure

  

Definition

The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.

A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.

An organizational chart illustrates the organizational structure.


Use this term in a sentence

  • Having a good organizational structure will lead to much better decisions by your business for its long term investment goals.

    7 people found this helpful
  • My buddy did not want to work on Saturday, but he complained to the plant manager instead of our department supervisor, completely ignoring the organizational structure of our company.

    11 people found this helpful
  • Before the man began working at his new job, he wanted to know the organizational structure and who was in charge.

    9 people found this helpful
Show more usage examples...

Related Videos




http://www.businessdictionary.com/definition/organizational-structure.html

Have a question about this term? Ask for help in the
Community
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z