What Is Organizational Structure?

  1. Objective 6-1 Discuss the factors that influence a firm’s organizational structure.

One key decision that business owners and managers must address is how best to structure their organization. Stated differently, they must decide on an appropriate organizational structure. We can define organizational structure as the specification of the jobs to be done within an organization and the ways in which those jobs relate to one another.4 Perhaps the easiest way to understand structure is in terms of an organization chart.

Organization Charts

Most small businesses create an organization ...

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