Strategy · HR glossary

Organisation Structure

Organisation structure is the formal arrangement of roles, reporting relationships and organisational units. It defines how responsibilities and authority are distributed.

Example

A business uses functional teams for finance, operations and sales, with a manager responsible for each function and agreed routes for cross-team decisions.

What to keep in mind

Formal structure is only part of how an organisation works. Informal relationships and actual decision practices may differ from the chart, so clarify important interfaces and accountabilities explicitly.

Further reading

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