The Basic Building Blocks of Organizational Structure

This text explains the formation of organizational structures. It includes a case study as an example of one company's path to designing the organizational structure after several acquisitions. It also provides an overview of the linkages between leadership and departments.

The Basic Building Blocks of Organizational Structure

Key Takeaways

  • The concept of division of labor (dividing organizational activities into smaller tasks) lies at the heart of the study of organizational structure. Understanding vertical, horizontal, and informal linkages helps managers to organize better the different individuals and job functions within a firm.