First of all we should distinguish between the organizing function & organizing structure. The organizing function is the process of breaking down the overall task into small jobs along with delegated authority to do those jobs & then putting them back together in units, or departments, of an optimal size according to some consistent bases. Thus we can describe the organizing function as dividing task into jobs, delegating authority, determining appropriate bases for departmentalizing jobs, & deciding the optimal number of jobs in a particular department. It helps to coordinate effort & create authority relationships.
Organizing structure is considered by many to be “the anatomy of the organization, providing a foundation within which the organization functions”. So the idea of a structure is a frame work – differentiation of position, prescriptions of authority. So structure helps to regulate the behavior of employees.
There are can be different kinds of organization structure, & firms can change their organization structure by becoming more or less centralized.
Most organization have a hierarchical or pyramidal structure, with one person or a group of people at the top, & increasing number of people below them at each successive level. There is a clear line or chain of command running down the pyramid. All the people in the organization know what decision they are able to make, who their superior (or boss) is (to whom they report), & who their immediate subordinates are (to whom they can give instructions). This structure is one of the simplest & it’s also called a line structure.
Some people in the organization have colleagues who help them: for example, there are might be an Assistant to the Marketing Manager. This is known