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Organization Structure

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Organization Structure
Organization structure

Organization structure is the formal pattern of interactions and co-ordination designed by management to link the tasks of individuals and groups in achieving organizational goals
Organization structure consists of four elements: ❖ The assignment of task and responsibilities that define the jobs of individuals and units. ❖ The clustering of individual positions into units and of units into departments and larger units to form an organizations hierarchy. ❖ The various mechanisms required to facilitate vertical (top-to-bottom) co-ordination, such as the number of individuals reporting to any given managerial position and degree of delegation of authority. ❖ The various mechanisms needed to foster horizontal (across departments) co-ordination such as task forces and interdepartmental teams.
Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambiance. The structure of an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Individuals in an organizational structure are normally hired under time-limited work contracts or work orders, or under permanent employment contracts or program orders.
The set organizational structure may not coincide with facts, evolving in operational action. Such divergence decreases performance, when growing. E.g. a wrong organizational structure may hamper cooperation and thus hinder the completion of orders in due time and within limits of resources and budgets. Organizational structures shall be adaptive to process requirements, aiming to optimize the ratio of effort and input to output.

An effective organizational structure shall facilitate working relationships between



References: Management Theory and Practice, “2nd Edition”. Barlow $ Martin, Management (1191), 3rd Edition. Wikipedia the free encyclopedia. ----------------------- 1

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