What does 'organizational structure' refer to?

Organizational structure refers to the way tasks and responsibilities are organized within a company. It outlines how various roles, teams, and departments are arranged and interrelate to achieve the organization’s goals. This structure defines how information flows between levels of management and how resources are allocated, influencing both the efficiency of operations and the effectiveness of communication.

An effective organizational structure helps to clarify reporting relationships and delineates roles and responsibilities, ensuring that employees understand their specific duties and how they contribute to the overall objectives of the company. It can take various forms, such as hierarchical, flat, matrix, or divisional structures, each of which suits different types of organizations and business strategies.

Understanding organizational structure is vital for both management and employees as it directly impacts workflow, collaboration, and productivity in the workplace.