Basic Elements Of Organizational Structure

Two basic kinds of organizational structures exist: (1) a formal organizational structure, and (2) an informal organizational structure.

The formal organizational structure represents the relationships between resources as designed by management.

The informal organizational structure represents the social relationships based on friendships or interests shared among various members of an organization.

When implementing a strategy, managers must take both the formal and the informal organizational structure into consideration for three reasons:

  • First, there is the question of whether the existing organizational structure will promote or impede successful implementation.
  • Second, there is question of what management levels and personnel within the organization will be responsible for various implementation tasks.
  • Third, the informal organization can be used to facilitate successful implementation. The Nature of Organizational Structure

An organization exists when two o more people coordinate their efforts, on an ongoing basis, to strive for a common purpose. When a entrepreneur consider taking on another person, the time has arrived for creating organizational structure.


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Strategy Implementation: Organizational Structure
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