What Is an Organizational Structure?

• Centralized vs. Decentralized Many companies use the traditional model of a centralized organizational structure.
• Hierarchical vs. Circular A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing.
• Vertical vs. Flat
• Benefits of Creating an Organizational Structure
• Essential Elements of Clear Organizational Structure

Organizational Structure for Companies With Examples and Benefits

• Understanding an Organizational Structure Businesses of all shapes and sizes use organizational structures heavily.
• Centralized vs. Decentralized Organizational Structures An organizational structure is either centralized or decentralized.
• Types of Organizational Structures Functional Structure
• Benefits of Organizational Structures
• The Bottom Line

Understanding Organizational Structures

• Overview Organizational structure aligns and relates parts of an organization, so it can achieve its maximum performance.
• Background Organizational structure is the method by which work flows through an organization.
• Business Case A hallmark of a well-aligned organization is its ability to adapt and realign as needed.
• Key Elements of Organizational Structures
• Types of Organizational Structures

Four Basic Elements of Organizational Structure

• Chain of Command Your chain of command is how tasks are delegated and work is approved.
• Departmentation Departmentation is one of the most important elements of your organizational structure.
• Span of Control Your span of control can represent two things: who falls under a manager's, well, management ... and which tasks fall under a department's responsibility.
• Centralization

When it comes to levels of a strategic business unit, there are three which includes:

• The corporate headquarters stay at the top.
• Strategic business units’ are in the middle.
• Divisions that are assembled based on the similarity within each strategic business unit remain at the bottom.