Strategic Management: Formulation and Implementation

What Is Structure?

The formal relationships among groups and individuals in the organization are called organizational structure. Chandler offered the following definition of structure and hypothesized the relationship between structure and strategy.

Structure can be defined as the design of organization through the organization in which the enterprise administered. This design, whether formally or informally defined, has two aspects. It includes, first, the lines of authority and communication between the different administrative offices and officers and, second, the information and data that flow through these lines of communication and authority. Such lines and data are essential to assure the effective coordination, appraisal, and planning so necessary in carrying out the basic goals and policies and in knitting together the total resources of the enterprise.

The Organization Chart

Understanding the overall structure of organizations facilitate organizations chart. The organization chart is a line diagram that depicts the broad outlines of an organization's structure. Organization charts vary in detail, but they typically show in visual form the various major positions or departments in the organization, the way the various positions are grouped into specific units, reporting relationships from lower to higher levels, and official channels for communicating information.
Alfred D. Chandler, Jr., "Origins of the OrganizationChart,"