What is organizational structure?

Organizational structure is the means by which a business or corporation defines roles, responsibilities and levels of authority within the company. The structure shows how information flows from top to bottom and vice versa.

What are the different types of organizational structures?

As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures. With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority.

What is organizational structure & why is it important?

The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial.