What is Organizational Structure?

By definition, an organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim.

An organisation can be structured into many different ways and styles, depending on the goal and objective such as matrix structure, entrepreneurial structure, functional structure and so on. We will discuss the different types of organisation structure later on.

Why does an organisation need a structure?

As we discuss in the class with Mr Bill, I managed to understand why an organisation need a structure.

By my understanding, an organisation structure allocates of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. It help individual cooperate systematically to achieve their objective or goal.

Besides that, an effective organizational structure help facilitate working relationships between various entities in the organization and may improve the working efficiency within the organizational units.

Every organisation made up of more than one person will need some form of organisational structure. An organisational structure shows the way in which the chain of command works within the organisation. For example:

n The Managing Director has the major responsibility for running of the company, including setting company targets and keeping an eye on all departments.

n The Distribution Manager is responsible for controlling the movement of goods in and out of the warehouse, supervising drivers and overseeing the transport of goods to and from the firm.

n The Production Manager is responsible for keeping a continuous supply of work flowing to all production staff and also for organizing manpower to meet the customers' orders.

The chart below is the organization chart for the SUNWAY COLLEGE