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Organizational structure

Organizational structure

Organizational structure refers to the hierarchical arrangement of various positions in an enterprise. It also defines the relationship between various positions, departments and persons. It helps in allocating authority and responsibility formally and decides who is to report to whom and who his subordinates are. Organization structure defines the formal relationship into managerial hierarchy. From this point of view there are three basic types of organization, which are quite popular in the business world, these are

1.       Line organization

2.       Line and staff organization, and

3.       Function organization

4.       Project organization

5.       Matrix organization

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