Organisation structure may be defined as the established pattern of relationships among the component parts of the organisation. Organisation structure in this sense refers to the network of relationships among individuals and positions in an organisation. It describes the organisation framework. Just as human beings have skeletons that define their parameters, organisations have structures that define their parameters.
It is like the architectural plan of a building. Just as the architect considers various factors like cost, space, special features needed etc. While designing a good structure, the managers too must look into factors like benefits of specialisation, communication problems, problems in creating authority levels etc., before designing the organisation structure.
The manager determines the work activities to get the job done, writes job descriptions, and organises people into groups and assigns them to superiors. He then fixes goals and deadlines and establishes standards of performance. Operations are controlled through a reporting system. The whole structure takes the shape of a pyramid. The structural organisation implies the following activities;
i) The formal relationships with well-defined duties and responsibilities;
ii) The hierarchical relationships between superior and subordinates within the organisation;
iii) The tasks or activities assigned to different persons and the departments;
iv) Coordination of the various tasks and activities;
v) A set of policies, procedures, standards and methods of evaluation of performance which are formulated to guide the people and their activities.
The arrangement which is deliberately planned is the formal structure of organisation. But the actual operations and behaviour of people are not always governed by the formal structure of relations. Thus the formal arrangement is often modified by social and psychological forces and the operating structure provides the basis of the organisation.
