Organizational Structure

It is important that an organization’s structure is built and revised as the company grows. Here are some key things to address if examining your company’s organizational structure: - Formalization – refers to written rules, policies, procedures (formalization would be low in a start-up or small organization) - Centralization – how much decision-making authority is held at different levels - Complexity – refers to different job titles and departments in an organization - Specialization – extent to which a big task is broken into smaller steps or tasks. How to determine the level of complexity required in the organization’s structure? - Define primary functions in the organization and c...