Week 1 Discussion

South University

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Organizational Structure An organizational structure is the arrangement of hierarchy within an organization, which includes how the factors of communications, authority, responsibility, roles, and power are arranged and managed. An organizational structure explains how information and communication flow throughout a firm and defines how a firm’s structure depends upon its strategies and goals. In addition, an organizational structure explains how employees are grouped into departments and how departments operate within a firm and includes how systems are used to support effective communication, integration, and coordination of departments throughout the organization.

An organizational structure is the arrangement of reporting hierarchy (who reports to whom) and is typically illustrated with an organizational chart. Organizational charts are visual demonstrations of the processes and activities that take place in a firm. Organizational charts display the number of levels of hierarchy and the span of control for managers. Span of control is the number of direct reports and the number of functions or things for which a manager is responsible. Employees can study an organizational chart to see how they fit in with the strategy of the organization, understand how parts of the organization fit together, and understand how the company works. Organizing workers into groups that report to a manager provides structure for positions and activities that align and promote the goals of the organization.

Organization Structure Review the zoom icon to view the enlarged image.

Every organization should be structured in such a way that provides both horizontal and vertical flows of information. An improper structure will restrict the flow of information. Employees will have too little information to act upon, causing poor execution and effectiveness as employees’ ability to execute their duties are diminished. There are factors to consider between horizontal and vertical flows of information. Vertical flows are effective for control, while horizontal linkages are effective for coordination that requires reduced control. Organizations are encouraged to remain flexible and support a structure that provides horizontal information to employees where and when needed.

South University

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Additional Materials

From your course textbook Organization Theory and Design, read the following chapter:

Fundamentals of Organization Structure

From the South University Online Library, read the following article:

The Structure of an Organization: Does It Influence Workplace Deviance and Its' Dimensions? And to What Extent? 