Organizational functions within a company, which can be thought of as the different "departments," such as marketing, human resources and information technology, impact the organizational structures of that company because the organizational functions break up the work into different groups, and the individual groups must each accomplish their tasks or the whole company will suffer. The organizational structures of a company are the ways in which the different departments interact and work together, and if one department does not accomplish its function, the whole business suffers because all departments rely on each other.
Businesses can have different ways of breaking up duties throughout the company. Most often, different divisions are created that serve specific functions. When each department completes its function, the duties of the entire company are complete and everything runs smoothly. Each division relies on the other divisions and reports to a division manager. The division managers then all report higher up until all duties have reached the CEO or owner, and presumably by that time all duties have been completed.
The way these divisions work together is referred to as the "organizational structure" of the company. The completion of the organizational functions of a company is vital to a smooth organizational structure. Because each division relies on the others for the company to stay afloat, how a division completes its function greatly affects the organizational structure of a business.