Organizational Structure

Organization structure is the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals.

In simple terms organizational structure is the relationship among people in organization. It  refers  to the formal  configuration between individuals and group with respect to the allocation of tasks, responsibilities and authority within organizations.

Features

A Good Organization Structure Should Meet Various Needs And Requirements Of The Enterprise.

The Following are The Features of A Good Organization Structure

1)   Clear line of authority.

2)   Adequate delegation of authority.

3)   Less managerial levels.

4)   Span of Control.

5)   Simple and Flexible

Any organizational structure is not perfect in itself. Managers are free to adopt any structure as per their suitability under a given situation. Any one structure is never the most suitable. There are many variables which determine the most suitable.

The variables or determinate of organizational statures' are discussed as follows.

Strategy

There is a close relationship between an organization's and structure. An organization's structure is a means to help management achieve its objective since objective fare derived from the overall strategy, it is only logical that strategy and structure should be closely6 linked. In fact structure should follow  strategy.

Organizational size

The size of the organization has an important bearing on the organization's structure. The concept of size may be used in term of number of employees, scale of operations, size of investment etc. there is considerable research evidence to prove that an organization's size significantly affects its structure. Large organizations tend to have more specialization, more departmentation, more vertical levels and regulation then the small originations. However they relationship is not linear. The impact of size become less significant as an organization expends

People

Organization structure is the result of conscious action on the part of people who are engaged in the organization. The requirements of different type of people differ concededly and these can be better met if the suitable organization structure is designed. A particular organization structure w2will not be suitable for both skilled and unskilled employees. 

Technology

The term technology refers to how an organization transfer its input into output. Different technologies influence the difference in operational producers procedures. In a highly sophisticated  technology. Fewer rules, slack control, flexibility, loose delegation of authority and less description of job are observed .large batch production have a mechanistic stricture. The organic structure  is more suitable for a firm having a unit and a small batches technology. Firm with a large  batch and mass production technology have a formal stricture with well defined job, authority and responsibility.

Environment

The environment of an organization also affects the organization structure. Organization‘s environment is composed of those institution or forces that are outside the organization and potentially affect the organization’s performance.