The structure defines the hierarchy within a company or organization. Businesses of all sizes rely on it to keep the company operating efficiently and headed in the right direction. A successful organizational structure clearly defines the job of each employee and the place their job holds in the system. The structure is usually illustrated in the form of a chart or diagram. Without a formal organizational structure in place, it can prove difficult and confusing for an organization. An example would be when employees are not certain who their immediate supervisor is. It can also lead to confusion about who is responsible for each job in the organization. An organizational structure within a company supports and promotes efficiency, inspires better production, and provides clarity for each employee at every level. In traditional organizations, the structure was a centralized leadership with an established chain of command. The military is a perfect example of a centralized structure within an organization.
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