What is meant by organizational structure?

Organizational structure refers to the way in which a company is designed and how various components of the organization interact with one another. This encompasses the hierarchy, roles, responsibilities, communication patterns, and processes that enable a business to operate efficiently. It provides a framework for decision-making, defines reporting relationships, and establishes how tasks are distributed among team members.

By understanding organizational structure, you can see how information flows within a company, how changes and strategies can be implemented, and how collaboration occurs. This structure can take many forms, such as hierarchical, flat, or matrix structures, each influencing the company culture and effectiveness in different ways.