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Organizational Structure
Definition
1. Organization structure designates formal
reporting relationships, including the number of
levels in the hierarchy and the span of control
of managers and supervisors
2. Organization structure identifies the grouping
together of individuals into departments and of
departments into the total organization
3. Organization structure includes the design of
systems to ensure effective communication,
coordination, and integration of effort across
departments
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Organizational Structure
These 3 elements of structure pertain to
both vertical and horizontal aspects of
organizing.
The first two elements are the structural
framework, which is the vertical
hierarchy.
The 3
rd
element pertains to the pattern of
interaction among employees.

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Organizational Structure
An ideal structure encourages employees
to provide horizontal information and
coordination where and when it is needed.

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Organization Chart or Organogram
Its the visual representation of a whole set of
underlying activities and processes in an
organization.
It isnt possible to see the internal structure of
an organization the way we might see its
manufacturing tools, offices, or products.
Organization chart can be quite useful in
understanding how a company works.
It shows the various parts of an organization,
how they are interrelated, and how each position
and department fits into the whole.
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Information-Processing Perspective
on Structure
The organization should be designed to provide both
vertical and horizontal information flow as necessary
If the structure doesnt fit the information requirements of
the organization, people will have either too little
information or will spend time processing information that
is not vital to their tasks, thus reducing effectiveness
Theres however inherent tension between vertical and
horizontal mechanisms
Whereas vertical linkages are designed primarily for
CONTROL, horizontal linkages are designed for
COORDINATION and COLLABORATION, which usually
means reducing control
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Vertical Information Linkages
Vertical links are used to coordinate
activities between the top and bottom of
an organization and are designed
primarily for control.
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Vertical Information Linkages
Following structural devices are used to
create these vertical links
1. Hierarchical Referral
2. Rules and Plans (SOPs)
3. Vertical Information System
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Horizontal Information Linkages
These links overcome barriers between
departments and provides opportunities
for coordination among employees to
achieve unity of effort and organizational
objectives.

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Horizontal Information Linkages
Devices include:
1. Cross-functional information systems
2. Direct contact
3. Task forces/ Cross-functional teams
4. Full-time integrator
5. Teams