What Is an Organizational Structure?

Organizational structure is defined as the way a company arranges the employees and positions to allow for the most affective amount of work to be performed. This varies on the size of the company and the number of employees that the company employs.

The factors that affect the structure of an organization are the type of work performed, amount of employees, the amount of revenue the company produces, the layout of the facilities and the range in which the services are received by the customers. An example of organizational structure is called job specialization. This is a report that organizes the employees by their position and hierarchy of management.