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Organizational structure is the process of creating the hierarchy within a company.
- The six elements of organizational design help business leaders establish the company departments, chain of command, and overall structure.
- The aspects of organizational structure most notably reviewed is the organizational chart.
- Organizational structure’s six elements are the 6 building blocks that managers must use in developing and structure organizational hierarchy.
- Elements of organizational structure are:
- Work Specialization
- Departmentalization and Compartments
- Chain of Command
- Span of Control
- Centralization and Decentralization
- Formalization of Elements
Understanding the nature of these elements and the different ways in which they can be configured is vital to the structure and routine of the organization in which you work.