An organization is a social unit of individuals that is designed and managed to achieve collective goals. As such organizations are open systems that are greatly affected by the environment they operate in. Every organization has its own typical management structure that defines and governs the relationships between the various employees, the tasks that they perform, and the roles, responsibilities and authority provided to carry out different tasks.
An organization that is well structured achieves effective coordination, as the structure delineates formal communication channels, and describes how separate actions of Individuals are linked together.
Organizational structure defines the manner in which the roles, power, authority, and responsibilities are assigned and governed, and depicts How information flows between the different levels of hierarchy in an organization.
The structure an organization designs depends greatly on its objectives and the strategy it adopts in achieving those objectives.
An organizational chart is the visual representation of this vertical structure. It is therefore very important for an organization to take utmost care while creating the organizational structure. The structure should clearly determine the reporting relationships and the flow of authority as this will support good communication – resulting in efficient and effective work process flow.