Features of formal organizational structure
What are the key elements of a formal organizational structure?
The key elements of a formal organizational structure include the division of labor, hierarchy of authority, span of control, formal reporting relationships, lines of communication, formal policies and procedures, and departmentalization based on functions, products, geography, or customers. A formal structure provides clarity and establishes order within an organization.
How does the chain of command function in a hierarchical structure?
In a hierarchical structure, the chain of command refers to the formal line of authority and decision-making within the organization. It establishes the flow of communication, control, and accountability. The chain of command typically starts from the top-level executives (such as the CEO or President) and cascades down through various management levels to the frontline employees. Each level has decision-making authority and supervisory responsibility over the level below. The chain of command ensures clear reporting relationships, defines the scope of responsibility, facilitates coordination and control, and helps maintain organizational order and structure.