CHAPTER 8

Organizational Structure

The theory of administration is concerned with how an organization should be constructed and operated in order to accomplish its work efficiently.

Simon (1976, p. 38)

Structure is defined as “the way in which parts are arranged or put together to form a whole” (American Heritage 2007, p. 1347). In general, within an organization there are two types of structures: the physical structure (e.g., the facility layout) and the knowledge structure. The knowledge structure creates the communication channels, so that the right information arrives at the right time at the right place. The structure should not only enable a company to coordinate internal interdependencies between units but also allow for adaptations ...

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