What is a Formal Organizational Structure?
Organizational structure is defined as a “hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim.” I like this definition for a couple of reasons. One is that it is easy to understand and to the point, unlike the long drawn out definitions where while reading, one forgets the previous sentence after moving to the next. The other is that it defines the term organizational structure in its crudest form. Because at the root of all the management jargon and mumbo-jumbo, organizational structure is really only that – a hierarchal structure that lays down each employee’s position in the organization. Brief History of Formal Organizational Structures While organizational structure still remains a pretty old concept, over the years it has undergone evolution to catch up with today’s business models. As new models of business kept cropping up, the management needed to keep their operations up-to-date so that the organization could extract the b
