What Is Organizational Structure? November 17, 2009

Key Design Questions and Answers for Designing the Proper Organization Structure

The Key Question The Answer Is Provided By

1. To what degree are articles —Work specialization
subdivided into separate jobs?

2. On what basis will jobs be grouped —Departmentalization
together?

3. To whom do individuals and groups —Chain of command
report?

4. How many individuals can a manager —Span of control
efficiently and effectively direct?

5. Where does decision-making —Centralization
authority lie? and decentralization

6. To what degree will there be rules —Formalization
and regulations to direct employees
and managers?

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