Understanding Organizational Structure and Design
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Organizational Structure
An organization is a group of individuals working together under a set of rules and standards of behavior to achieve specific objectives.
Importance of Organization
A well-defined organizational structure is crucial for any company's success. It provides a framework for efficient operations, facilitates goal achievement, and minimizes effort duplication. A robust structure aligns with the company's objectives, plans, authority, and operating environment.
Types of Organizations
There are two primary types of organizational structures:
- Informal Organization: This type emerges spontaneously from the relationships and interactions among individuals holding formal positions within an organization.
- Formal Organization: This structure