KEY ELEMENTS OF ORGANISATION

An organizational structure defines how activities such as task allocation, coordination and supervision
are

directed toward the achievement of organizational aims.Organizations need to be efficient, flexible,

innovative and caring

in order to achieve a sustainable competitive advantage.[2] Organizational structure can also be

considered as

the viewing glass or perspective through which individuals see

their organization and its environment.

Work specialization or division of labor is

the degree to which activities in the organization are subdivided

into separate jobs. Work specialization creates efficiency and productivity, but

can also result in boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and
high turnover.

Departmentalization (or departmentalisation) refers to

the process of grouping activities into departments. Division of labour creates

specialists who need coordination. This coordination is

facilitated by grouping specialists together in departments.

Chain of Command in Organizational Structure

In an organizational structure, “chain of command” refers to a company's hierarchy of reporting

relationships --

from the bottom to the top of an organization, who must answer to whom. The chain of

command not only establishes accountability, it lays out a company’s lines of authority and decision-
making power.

A proper chain of command ensures that every task,

job position and department has one person assuming responsibility for performance.
Span of control is the term now used more commonly in business management, particularly human
resource management.

Span of control refers to the number of subordinates a supervisor has.

Centralisation (British) or centralization (both British and American) is the

process by which the activities of an organization, particularly those regarding planning and

decision-making, become concentrated within a particular geographical location group. This moves the

important decision-making and planning powers within the center of the organisation.

Formalization in organizational structure is a process in which managers specify (in writing), procedures,
rules and

responsibilities for the individual employees, organizational units, groups, teams and the organization

as a whole, which leads to the development of processes, relationships, and operating procedures.

formalization of the organization is the result of the management's tendency towards bureaucracy and
centralization.