What is Organizational Structure?

Have you ever noticed how different work situations affect people’s behavior? We know that not all situations are equally conducive to effective organizational behavior (OB). Careful analysis reveals that the structure of an organization has a large impact on behavior. An organizational structure defines how job tasks are formally divided, grouped, and coordinated. Managers should address seven key elements when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, formalization, and boundary spanning.1 Exhibit 15-1 presents each element as the answer to an important structural question, and the following sections ...

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