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A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. The organizational structure determines how the organization performs or operates. The term "organizational structure" refers to how the people in an organization are grouped and to whom they report.
A 1959 symposium held by the Foundation for Research on Human Behavior in Ann Arbor, Michigan, was published as Modern Organization Theory. Among a group of eminent organizational theorists active during this decade were E. Wight Bakke, Chris Argyris, James G. March, Rensis Likert, Jacob Marschak, Anatol Rapoport, and William Foote Whyte. [13]
An organizational chart, also called organigram, organogram, or organizational breakdown structure (OBS), is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. The term is also used for similar diagrams, for example ones showing the different elements of a field of ...
A well-known distinction is between formal and informal hierarchy in organizational settings. According to Max Weber, the formal hierarchy is the vertical sequence of official positions within one explicit organizational structure, whereby each position or office is under the control and supervision of a higher one. [19]
But in modern societies, formal organizational structures arise in highly institutional contexts. Organizations are driven to incorporate the practices and procedures defined by prevailing rationalized concepts of organizational work and institutionalized in society.
Choosing a structure for a company is an important decision and must be strategically thought out because it could either aid or harm the making of business. The structure must also be a good fit for the type of activities, goals, and vision of the company. [3] The organizational structure is a reflection of how conveniently business is conducted.
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