Organizational structure refers to the way in which an organization arranges its lines of authority and communication, as well as the distribution of responsibilities, roles, and power. It establishes how information flows between levels of management and how tasks are delegated and completed.
Choosing the right organizational structure is crucial for any organization as it impacts factors such as efficiency, adaptability, employee morale, and customer satisfaction. A well-defined structure provides clarity of roles and responsibilities, facilitates effective communication, and enables efficient decision-making.