Organizational Structure

Organizational structure “is the formal system of relationships that determines lines of authority and the tasks assigned to individuals and units.” (Gomez, Mejia & Balkin, p.232).

Organization structure is comprised of functions, relationships, responsibilities, authorities, and communications of individuals within each department." (Sexton, 1970, p.23). The typical depiction of structure is the organizational chart. The organizational chart has been described as looking like a tree, with the roots representing the president and the board of directors, while the branches symbolize the various departments and the leaves depict the staff workers. The result of the organizational chart was a clear line of authority showing where subordinates were accountable to their immediate supervisors (Chandler, 1988, p. 156).

According to Gomez, Mejia and Balkin (2002), the dimensions of organizational structure are vertical and horizontal.

1. Vertical

Indicates who has the authority to make decisions and who is expected to supervise which subordinates. It involves: unity of command, authority, responsibility, line authority, staff authority, span of