Organizational Structure

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  • The arrangement of an organization with respect to task allocation, centrali zation of power, and the mechanisms of coordination and control. Common forms of organizational structure include functional, matrix, and divisional structures. The determinants of organizational structure include the organization's size, the extent of routinization of processes, and the life-cycle stage of the organization, among other factors. A complex organizational structure implies a high degree of specialization or division of labor, numerous levels of hierarchy (i.e., vertical differen tiation), geographic dispersion, and a tendency toward decentralization (i.e., decision making and authority are dispersed downward in the hierarchy).

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