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Organizational Structure

“Organizational structure” refers to the way that a company arranges its people and jobs to enable work to be performed and its goals met—in essence, to establish how an organization operates. This structure defines how activities, such as task allocation, coordination, and supervision, are directed toward the achievement of organizational objectives. An organization’s structure depends on many factors, including its size in terms of employees, revenue, and the geographic dispersion of its facilities; the work it does; and the range of its businesses. Types of organizational structure include divisional, functional, geographical, and matrix, among others.