Abstract
Abstract Organizational structure refers to the specific design of a company or group in regard to the ways in which management is arranged, the way decisions of the organization are made, the ways employees or members interact with one another, and the ways the organization interacts with other organizations. Understanding the differences between the various types of organizational structures is important in order to choose what type of structure would be best for an organization. Choosing the best organizational structure can lead to more productive workers, a better work environment, and a more effective organization. However, a disorganized structure can lead to a loss of production, a strained and stressful work environment, dissatisfied workers, and an inefficient organization. Theories of organizational structures fall into three broad areas: Classical Organization Theory, Humanistic Organizational Theory, and Contingency Organizational Theory.
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